Hi guys

As if my 3 page thread on Macaulay Duration wasn't enough, I am starting another! I think (through the help of Dr. Ostaszewski, many people here including ctperng, and Prof Zara at UMass) I am finally able to understand what Duration means.

I wrote a big PDF file which I would like to share with all of you! I tried to make it as easy to read as possible. In it I offer 2 common interpretations of the Macaulay Duration, namely

1) It can be thought of as the time T in the future such that the yield of a security will be independent (ideally) of the interest rate.

2) It can be thought of as the expected time till maturity of cash flows of a security.

I then proceed to demonstrate where these interpretations come from.

The PDF can be found at:

http://evo-games.com/music/Macaulay_...n_05-15-27.pdf

I hope anybody struggling with Duration can use this to help themselves.

Thanks again

- junk