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Formula generator for MDURATION function

The MDURATION function calculates the modified Macaulay duration of a security paying periodic interest, such as a US Treasury Bond, based on expected yield. It takes into account the settlement date, maturity date, coupon rate, yield, frequency, and optional day count convention.

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How to generate an MDURATION formula using AI.

To obtain information on the ARRAY_CONSTRAIN formula, you could ask the AI chatbot the following question: “To obtain the MDURATION formula for your data, you can ask the AI chatbot the following question: "What is the formula for calculating the Macaulay duration (MDURATION) in Excel?"

MDURATION formula syntax

The MDURATION function in Excel calculates the Macaulay duration of a security with a fixed interest rate. The syntax for the MDURATION function is: MDURATION(settlement, maturity, coupon, yield, frequency, basis) - settlement: The date when the security is purchased. - maturity: The date when the security matures. - coupon: The annual coupon rate of the security. - yield: The annual yield of the security. - frequency: The number of coupon payments per year. - basis: Optional argument that specifies the day count basis to use. The MDURATION function returns the Macaulay duration, which measures the weighted average time it takes to receive the present value of all cash flows from the security

Use Cases & Examples

In these use cases, we use the MDURATION formula to calculate the modified duration of a bond or other fixed-income security. The MDURATION formula takes into account the bond's yield, maturity, and coupon rate to provide an estimate of the bond's price volatility in response to changes in interest rates.

Bond Duration Calculation

Description

Calculates the modified Macaulay duration of a bond based on its settlement date, maturity date, coupon rate, yield, frequency, and day count convention.

Result

MDURATION(settlement, maturity, rate, yield, frequency, [day_count_convention])

Portfolio Duration Calculation

Description

Calculates the weighted average duration of a portfolio of bonds based on their individual durations and weights.

Result

SUMPRODUCT(duration_range, weight_range)

Bond Price Sensitivity Analysis

Description

Calculates the percentage change in the price of a bond for a given change in yield, based on its duration.

Result

BONDPRICE(bond_yield + yield_change, coupon_rate, settlement, maturity, frequency) - BONDPRICE(bond_yield, coupon_rate, settlement, maturity, frequency)

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