MDURATION Function Explained
The MDURATION Function in Microsoft Excel calculates the Macaulay duration of a security with an assumed par value of $100. It takes the following arguments: settlement, maturity, coupon, yld, frequency, and basis. The Macaulay duration is a measure of the sensitivity of the price of a security to changes in interest rates.
MDURATION Function Syntax
MDURATION(settlement, maturity, coupon, yld, frequency, [basis])
- settlement: The security’s settlement date. The security settlement date is the date after the issue date when the security is traded to the buyer.
- maturity: The security’s maturity date. The maturity date is the date when the security expires.
- coupon: The security’s annual coupon rate.
- yld: The security’s annual yield.
- frequency: The number of coupon payments per year. For annual payments, frequency = 1; for semiannual, frequency = 2; for quarterly, frequency = 4.
- basis: The type of day count basis to use. The default value is 0 (US (NASD) 30/360).