Which duration is computed by discounting flows using the yield to maturity of the bond?
A) effective duration
B) Macaulay duration
C) modified duration
D) present value duration
E) cash flow duration

Question

Quizplus · Accepted Answer

Macaulay duration calculates the weighted average time until a bond's cash flows are received, and it discounts these cash flows using the bond's yield to maturity.

Which Duration Is Computed by Discounting Flows Using the Yield