Skip to main content

Excel DURATION function

The DURATION function calculates the duration (in particular, the Macaulay Duration) of a security that pays interest on a periodic basis with a par value of $100.

Syntax

DURATION(settlement, maturity, coupon, yld, frequency, [basis])

Arguments

Settlement (required): The settlement date of the security. It is the date after the issue date when the security is purchased;
Maturity (required): The maturity date of the security. It is the date on which the security expires;
Coupon (required): The annual coupon rate of the security;
Yld (required): The annual yield of the security;
Frequency (required): The number of coupon payments per year. There are three types of payment frequency:
--Frequency = 1 is for annual payments;
-- Frequency = 2 is for semiannual payments;
-- Frequency = 4: is for quarterly payments.
Basis (optional): An integer number (0, 1, 2, 3 or 4) which specifies the day count basis to be used. Default is 0.
 Basis  Date System 
 o or omitted  US 30/360 (NASD method) 
 1  Actual/actual
 2  Actual/360
 3  Actual/365
 4  European 30/360

Remarks

1. In Excel, dates can be used in calculations as they are stored as sequential numbers. By default, 1/1/1900 is serial number 1, so 12/1/2021 is serial number 40877 because it is the 40877 days after 1/1/1990.
2. If the parameters “settlement”, “maturity”, “frequency” and “basis” are decimals, they will be truncated to integers
3. The #NUM! error occurs when one of the following condition is met:
1) The “settlement” date is greater than or equal to the “maturity” date;
2) If any of the values in arguments “salvage”, “period”, “rate”, and [basis] contains an invalid number:
Such as: "coupon" < 0; yld < 0; "frequenc" is not equal to 1, 2 or 4; or [basis] is any number other than 0, 1, 2, 3 or 4;
4. The #VALUE! error occurs when one of the following condition is met:
1) One or both the “settlement” date and the “maturity” date are not valid Excel dates;
2) Any of the arguments are non-numeric.

Return Value

It returns a numeric value.

Example

As shown in the screenshot below, in range B5:C10 lists the details of a security, to calculate the Macaulay duration, you can do as follows.

1. Select a blank cell to output the result, copy or enter the formula below and press the Enter key.

=DURATION(C5,C6,C7,C8,C9,C10)

Notes: In addition to using references to date cells in the formula, you can directly type in dates by using DATE function as follows.

=DURATION(DATE(2011,12,1),DATE(2021,9,1),C7,C8,C9,C10)

Related Functions

Excel COUPDAYBS Function
The COUPDAYBS function returns the number of days between the beginning of the coupon period and its settlement date.

Excel COUPDAYS Function
The COUPDAYS function returns the number of days in the coupon period including the settlement date.


The Best Office Productivity Tools

Kutools for Excel - Helps You To Stand Out From Crowd

🤖 Kutools AI Aide: Revolutionize data analysis based on: Intelligent Execution   |  Generate Code  |  Create Custom Formulas  |  Analyze Data and Generate Charts  |  Invoke Kutools Functions
Popular Features: Find, Highlight or Identify Duplicates  |  Delete Blank Rows  |  Combine Columns or Cells without Losing Data  |  Round without Formula ...
Super VLookup: Multiple Criteria  |  Multiple Value  |  Across Multi-Sheets  |  Fuzzy Lookup...
Adv. Drop-down List: Easy Drop Down List  |  Dependent Drop Down List  |  Multi-select Drop Down List...
Column Manager: Add a Specific Number of Columns  |  Move Columns  |  Toggle Visibility Status of Hidden Columns  Compare Columns to Select Same & Different Cells ...
Featured Features: Grid Focus  |  Design View  |  Big Formula Bar  |  Workbook & Sheet Manager | Resource Library (Auto Text)  |  Date Picker  |  Combine Worksheets  |  Encrypt/Decrypt Cells  |  Send Emails by List  |  Super Filter  |  Special Filter (filter bold/italic/strikethrough...) ...
Top 15 Toolsets12 Text Tools (Add Text, Remove Characters ...)  |  50+ Chart Types (Gantt Chart ...)  |  40+ Practical Formulas (Calculate age based on birthday ...)  |  19 Insertion Tools (Insert QR Code, Insert Picture from Path ...)  |  12 Conversion Tools (Numbers to Words, Currency Conversion ...)  |  7 Merge & Split Tools (Advanced Combine Rows, Split Excel Cells ...)  |  ... and more

Kutools for Excel Boasts Over 300 Features, Ensuring That What You Need is Just A Click Away...

Description


Office Tab - Enable Tabbed Reading and Editing in Microsoft Office (include Excel)

  • One second to switch between dozens of open documents!
  • Reduce hundreds of mouse clicks for you every day, say goodbye to mouse hand.
  • Increases your productivity by 50% when viewing and editing multiple documents.
  • Brings Efficient Tabs to Office (include Excel), Just Like Chrome, Edge and Firefox.
Comments (0)
No ratings yet. Be the first to rate!
There are no comments posted here yet
Please leave your comments in English
Posting as Guest
×
Rate this post:
0   Characters
Suggested Locations