Macaulay's duration formula is as follows: D=∑t=1Nt⋅Ct(1+r)t∑t=1NCt(1+r)twhere:D=The bond’s MacAulay durationT=The number of periods until maturityi=The ith time periodC=The periodic ...

But by how much? Modified duration is a formula that measures the sensitivity of the valuation change of a security to changes in interest rates. The Macaulay duration is named after economist and ...