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.
What does this mean? Duration is a measure of the length of time it will take the bond's cash flows to repay the investor the price he or she paid for the bond. The smaller the duration of a bond, the faster an investor will get back his or her investment through coupon payments and the final par-value payment.hat does this mean? Duration is a measure of the length of time it will take the bond's cash flows to repay the investor the price he or she paid for the bond. The smaller the duration of a bond, the faster an investor will get back his or her investment through coupon payments and the final par-value payment.