Excel 2000 in a Nutshell

Name

MDURATION

Synopsis

MDURATION (an Analysis Toolpak function) allows you to determine the modified duration of a security. The security is assumed to have a par value of $100.

To Calculate

=MDURATION(Settlement, Maturity, Coupon, Yld, Frequency, Basis)

The Basis argument is the only optional argument. All other arguments must have values.

Coupon

Specifies a numeric value that represents the annual coupon rate for the security. For example, if the security has a coupon rate of 9% the value of this argument is 0.9.

Yld

Indicates the annual yield (interest paid) of the security. The value of the argument should be a numeric value that represents the yield percentage. For example, if the security pays 5% annually, the value of this argument would be 0.5.

Example

The DURATION function covered in this chapter has an example of using MDURATION to determine the modified duration of a security.