## 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.

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