canadiananalyst

alimesoda Wrote:
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> believe the macauley duration is expressd in years (weighed av of cash flows)
> modified and effective as %

My understanding is that while Macauley Duration is a measurement of time, Modified/Effective Duration are not. Moreover, matching the duration of a bond (asset) with a liability's horizon date means that the cash flows of the bond can meet the payment to the liability ?