Question
Show that the Macaulay's duration weights (as defined in the notes) sum up to 1 (present the algebra used to obtain this result). Explain how
Show that the Macaulay's duration weights (as defined in the notes) sum up to 1 (present the algebra used to obtain this result). Explain how the size of the cash flow at each pe- riod, coupon and principle payments, (you may consider all other variables as constants) affect the size of those weights and relate this to the value of the duration.
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Cost Accounting Foundations and Evolutions
Authors: Michael R. Kinney, Cecily A. Raiborn
8th Edition
9781439044612, 1439044619, 978-1111626822
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