Abstract
ABSTRACT Macaulay's Duration can be used as an objective measure for evaluating the repayment performance of loans, borrowers and also loan officers, lending institutions and economies. This paper explores the use of Duration and demonstrates through a numerical example the Duration Ratio as it changes over time with loan payments. The method is simple and require elementary computing power. Further, it is amenable to aggregation over units, divisions, regions and economies. Keywords loan repayment performance, loan tracking, uses of Duration.
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