Macaulay Duration Is a Bond's Weighted Average Life Based on Present

question 35

True/False

Macaulay duration is a bond's weighted average life based on present value of cash flows.

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Definitions:

Industrialization

The process of economic and social transformation that converts agrarian societies into industrial ones.

Increasing

A process or trend characterized by a gradual rise or growth in quantity, size, intensity, or degree.

McDonaldization

A term that describes the process by which the principles of the fast-food industry, such as efficiency, predictability, and standardization, have come to dominate other sectors of society.

Rationalization

Rationalization is the application of the most efficient means to achieve given goals and the unintended, negative consequences of doing so.