Why is Macauley Duration a better measure of duration, especially in the context of ZCBs?

[archived_user]

Why is Macauley Duration a better measure of duration, especially in the context of zero coupon bonds?

 

[archived_user]

Not sure what you mean. MacDur and ModDur measure different things (i.e. weighted average time to get your cash flows and a change in price for a change in YTM, respectively), or am I mistaken? And for a zero duration = maturity since you will only receive one cash flow at the end of the period.

 

[archived_user]

Depends on your definition of “duration”