Macaulay Duration and Coupon rate

[playstan211]

Hi all,
I cannot get the intuition here. Hope you guys can clear the doubts.
When Coupon rate increases, doesn’t the Macaulay Duration is longer since the numerator is larger than the denominator. Larger CR divided interest rate will have a larger number. Larger number divide by the PV will have the larger Macaulay.
and my understanding is the shorter the Macaulay, the faster you get your money back.
Hope any kind soul can help me. S2000magician I know you do..

 

[breadmaker]

Start by treating the bond as a zero coupon instrument: 100% of the weight will be on that final payment at time n when calculating the Macauley duration. As you pay a non-zero coupon, some of the weight will be shifted away from time n to the shorter time periods. The higher the coupon rate, the more weight is shifted down from time n to the shorter time periods.

 

[S2000magician]

I wrote an article on duration that covers this well: http://www.financialexamhelp123.com/macaulay-duration-modified-duration-...
Full disclosure: as of 4/25 I’ve installed the subscription software on my website, so there’s a charge for viewing the articles.