Search results
This bond duration tool can calculate the Macaulay duration and modified duration based on either the market price of the bond or the yield to maturity (or the market interest rate) of the bond. Since you'll have one or the other, choose the easier path to compute the duration.
7 wrz 2023 · Macaulay Duration, named after economist Frederick Macaulay, is a measure of a bond's sensitivity to interest rate changes. It calculates the weighted average time it takes to receive the bond's cash flows, factoring in present value.
29 wrz 2022 · The Macaulay duration is the weighted average term to maturity of the cash flows from a bond. The weight of each cash flow is determined by dividing the present value of the cash flow by the...
29 kwi 2024 · Macaulay Duration is the time it takes to recover investment in a bond through interest and principal payments. It is calculated by taking the weighted average of the time an investor holds the bond until the present value of cash inflows equals the amount paid.
Macaulay duration measures the weighted average of the time to receive the cash flows from a bond so that the present value of cash flows equals the bond price. A bond’s Macaulay duration is positively related to the time to maturity and inversely related to the bond’s coupon rate and interest rate.
Calculate the Macaulay Duration and Modified Macaulay Duration for a bond. Here are bond present values for the above input values using different adjusted market rates. See Bond Calculator - Macaulay Duration, Modified Macaulay Duration, Convexity for computational procedures used by the calculator.
In this short guide, you’ll see how to calculate the bond duration. More specifically, you’ll see how to calculate the: Macaulay duration; and; Modified duration; To start, here is the formula that you can use to calculate the Macaulay duration (MacD): (t1*FV)(C) (tn*FV)(C) (tn*FV)
