# Bond Duration Calculator

This tool is used to calculate macaulay duration and modified bond duration based on par value, coupon payment, interest rate, maturity years and payment frequency.

# Results

Yield to Maturity (%) = **2.61**

Macaulay Bond Duration = **4.5 Years**

Modified Bond Duration (Δ%/1%) = **4.46**

Quarterly Annually |
None (Zero Coupon) |

# Results

Current Market Price ($) = **978.40**

Macaulay Bond Duration = **4.5 Years**

Modified Bond Duration (Δ%/1%) = **4.36**

## Bond Duration

Bond duration is an actual matter in the field of financial instruments. Duration is a measure of interest-rate risk and it is more accurate as the change in the interest rate becomes smaller.

**Frank Macaulay Duration Formula :**

_{1}÷ (1+yield)

^{1}+ 2 × Payments

_{2}÷ (1+yield)

^{2}+....+(n-1) × Payments

_{n-1}÷ (1+yield)

^{n-1}+ n × Payments

_{n}+Par Value ÷ (1+yield)

^{n}

**Frank Macaulay Modified Duration Formula :**

**Modified Bond Duration (Δ%/1%) :**

Measured in percentage change(in price) per percentage change(in interest rate/yield to maturity).In terms of percent, we can say

**Modified Bond Duration (Δ%/1%) :**

Measured in percentage price change per unit interest rate change.

** Note:** If we want to improve our estimate of the % change in the bonds price, we can add a convexity adjustment.

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