What this market video covers
Macaulay duration is not simply the average of the payment dates. Consider a hypothetical two year bond with one hundred dollars of principal, ten dollar annual coupons, and a ten percent annual discount yield. Assume valuation immediately after a coupon, scheduled payments, no default and no embedded option. At year one, the ten dollar coupon has present value about nine dollars nine cents. At year two, the coupon plus principal is one hundred ten dollars, with present value about ninety dollars ninety one cents. Total present value is one hundred dollars. Weight each payment time by its share of that present value. Using unrounded inputs, one times the first value plus two times the second, divided by one hundred, gives approximately one point nine zero nine years. That is less than two year maturity, but greater than the equal date average of one point five years. Different duration measures answer different questions. Hypothetical worked example; stated assumptions apply. Educational content, not personalized investment advice.
Use this analysis as general education. Confirm current prices and conditions independently, define invalidation before entry, and size every position for the loss you can actually tolerate.