Signs That An Oil Pump Needs Replacing The engine of an automobile relies on many parts functioning properly. It should be no surprise that if one becomes deficient; it is going to cause a great deal of wear on the engine itself.
Macaulay duration is a time measure with units in years, and really makes sense only for an instrument with fixed cash flows. For a standard bond the Macaulay duration will be between 0 and the maturity of the bond. It is equal to the maturity if and only if the bond is a zero-coupon bond.
Definition of 'Duration'. Definition: As the term suggests, it is expressed in the form of number of years and measures a bond's sensitivity to change in interest rates. To be specific, it measures the change in market value of security due to 1% change in interest rates. Description: Usually, the higher the duration, the more is the volatility in the prices.