One author says that duration is the weighted average life of a financial instrument. A different one

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One author says that duration is the weighted average life of a financial instrument. A different one says that duration is a measure of elasticity. Which of the authors is correct? Or, are they both correct?

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Bank Management

ISBN: 978-1133494683

8th edition

Authors: Timothy W. Koch, S. Scott MacDonald

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Question Posted: Nov 03, 2015 05:54 AM

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One author says that duration is the weighted average life of a financial instrument. A different one

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Both are correct The mathematics calculates Macaulays duration as the ...View the full answer

Bank Management

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