You may refer to the following guide that further explains how to calculate the Bond Duration. The Modified duration is therefore = 1.839 Once you calculated the Macaulay duration, you'll be able to use the formula below in order to derive the Modified Duration (ModD): MacD Pay special attention to the last period ( t 4= t n= 2 years) which requires both the coupon payment as well as the final principal repayment. t i = Time in years associated with each coupon paymentįor example, let's suppose that you have a bond, where the:īased on the above information, here are all the components needed in order to calculate the Macaulay Duration:Īdditionally, since the bond matures in 2 years, then for a semiannual bond, you'll have a total of 4 coupon payments (one payment every 6 months), such that:.You can use the following formula to calculate the Macaulay Duration (MacD): (t 1*FV)(C) (t n*FV)(C) (t n*FV) Once you are done entering the values, click on the 'Calculate Bond Duration' button and you'll get the Macaulay Duration of 1.912 and the Modified Duration of 1.839: Formulas to Calculate the Bond Duration Simply enter the following values in the calculator: You can easily calculate the bond duration using the Bond Duration Calculator.
(2) What is the bond’s Modified Duration? (1) What is the bond’s Macaulay Duration? Two eighth notes join together is called beamed eighth or quaver notes: Sixteenth Note (Semiquavers) A sixteenth note (American English) or semiquavers (British English) has two flags. An eighth note is played for one eighth the duration of a whole note. Example of using the Bond Duration Calculator Two eighth notes equal the duration of a quarter note.