Macaulay duration is an important tool used by forex traders to measure the sensitivity of a bond’s overall duration to changes in interest rates. This measure can be used for both individual and country-level duration assessment. Macaulay duration works by calculating the present value of the coupon payments of the bond, when discounted using the current yield on the bond. The value obtained is then divided by the bond’s face value to determine the Macaulay duration. By assessing the Macaulay duration of a bond, forex traders can measure the sensitivity of the bond’s duration to changes in interest rates, as well as its value over time.