Which of the following will affect a bond's Macaulay duration?
I. The current yield to maturity.
II. The coupon rate.
III. The maturity.

Question

Quizplus · Accepted Answer

Macaulay duration is affected by the yield to maturity, the coupon rate, and the bond's maturity. The yield to maturity affects the present value of the bond's cash flows, the coupon rate influences the size and timing of these cash flows, and the bond's maturity determines the length of time over which these cash flows are spread.

Which of the Following Will Affect a Bond's Macaulay Duration