How do you calculate modified duration of a bond in Excel?

The formula used to calculate a bond’s modified duration is the Macaulay duration of the bond divided by 1 plus the bond’s yield to maturity divided by the number of coupon periods per year. In Excel, the formula used to calculate a bond’s modified duration is built into the MDURATION function.

How do you calculate modified duration?

To find the modified duration, all an investor needs to do is take the Macaulay duration and divide it by 1 + (yield-to-maturity / number of coupon periods per year). In this example that calculation would be 2.753 / (1.05 / 1), or 2.62%.

How to calculate modified duration on BA II plus bonds?

Calculate the modified duration on the bond. In your BA II Plus Professional calculator dates are entered in the mm.ddyy format. It is useful to use an easy starting date, such as 01/01/2000 and add the time to maturity to it to determine the ending date.

How to calculate duration of TI BA II Plus?

CF Menu: (leave CFO empty) CF1 = 1 * 3,5 N=1 / CF2 = 2 * 3,5 N=1 / CF3 = 3 * 103,50 N =1 c. Duration = NPV / PV so step 2b value divided by step 1a value = 2,9009 or ~2,901

What do you need to know about Ba II Plus?

This app is ideally suited for business majors and finance professionals. Apply for the BA II Plus™ Professional calculator and emulator. Store up to 32 uneven cash flows with up to four-digit frequencies and edit inputs to analyze the impact of changes in variables.

How to cancel BA II Plus professional calculator?

To select a second function, press & and the corresponding key. (When you press &, the 2nd indicator appears in the upper left corner of the display.) For example, pressing & U exits the selected worksheet and returns the calculator to the standard- calculator mode. Note: To cancel after pressing &, press & again.