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Macaulay Duration: Definition, Formula, Example, and How It Works.

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Macaulay Duration: Definition, Formula, and Example How is Macaulay duration Modified duration calculated? Macaulay duration is the weighted average of the cash flows from a bond, where the weights are determined by the present value of each cash flow. Modified duration is a measure of a bond’s price sensitivity to changes in interest rates. It … Read more

Reading the Degree of Financial Leverage.

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The degree of financial leverage ratio measures the percentage of a company’s assets that are financed by debt. This ratio is also known as the debt-to-assets ratio. A higher degree of financial leverage ratio indicates that a greater portion of the company’s assets are financed by debt. This can be a risky proposition for investors, … Read more