  # 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.

 Monthly Quarterly Annually Twice a Year None (Zero Coupon)

# Results

Yield to Maturity (%) = 2.61

Macaulay Bond Duration = 4.5 Years

Modified Bond Duration (Δ%/1%) = 4.46

 Monthly Quarterly Annually Twice a Year 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 × Payments1 ÷ (1+yield)1 + 2 × Payments2 ÷ (1+yield)2+....+(n-1) × Paymentsn-1 ÷ (1+yield)n-1 + n × Paymentsn+Par Value ÷ (1+yield)n Current Price

Frank Macaulay Modified Duration Formula :

= Macaulay Duration 1 + YTMAnnual Payments

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. ### Recommended Pages ►

GDP Calculator

Cross-Price Elasticity Demand Calculator

Earnings Per Share(EPS) Calculator