what is macculay duration ?? sir can u please explain it in basic terms and with a simple example. I understand only modified duration which is change in value of bond due to change in interest rate (i.e sensitivity). Though tried to understand from many sources about about macculay duration but i always get confused never understood it.
Since it is a level 3 doubt and you have asked for numerical example, I think it will be better communicated if i share the level 1 notes where it was dictated very comprehensively. Please go through the same
Please note that the order of pages are as follows : 1,3,2,5,4,7,6
Requesting you to follow and read accordingly
please refer attachment
20201003_013441070