In this tutorial, we will guide you on how to use the DURATION Function In Excel Office 365. Let’s get them below!! Get an official version of MS Excel from the following link: https://www.microsoft.com/en-in/microsoft-365/excel
DURATION Function
- The DURATION function is a built-in financial function which returns the Macauley duration per $100 face value of a security that pays periodic interest.
- It is also similar to the MDURATION Function.
DURATION Function Syntax
=DURATION(settlement, maturity, rate, yld, redemption, frequency, [basis])
Syntax Explanation:
- Settlement: Settlement date of the security
- Maturity: Maturity date of the security. The maturity date is the date when the security expires.
- Rate: The security’s annual coupon rate
- Yld: The security’s annual yield
- Frequency: Coupon payments per year (annual = 1, semiannual = 2; quarterly = 4.
- basis: [optional] Day count basis.
Example1
- Firstly, you need to create sample data with input values.
- Then, you have to calculate the Macauley DURATION per $100 face value of a security that pays periodic interest.
- Now, you need to use the following formula given below.
=DURATION( B1 , B2 , B3 , B4 , B5 , 0 )
B1: Settlement date of the security
B2: Maturity date of the security. The maturity date is the date when the security expires.
B3: The security’s annual coupon rate
B4: The security’s annual yield
B5: Coupon payments per year (semiannual = 2).
0: [optional] Day count basis.
NOTE: Dates in the formula must be entered using cell reference or DATE function. Excel date format creates #VALUE! error while computing results. Use the cell reference or DATE function in Excel while taking the date as input to the function. Now Press Enter to get the DURATION.
- After that, the formula returns the DURATION per $100 face value of a security that pays periodic interest.
Example2
- Firstly, you need to create sample data with input values.
- Then, you have to calculate the Macauley DURATION per $100 face value of a security that pays periodic interest.
- Now, you need to use the following formula given below.
=DURATION( B1 , B2 , B3 , B4 , B5 , 0 )
B1: Settlement date of the security
B2: Maturity date of the security. The maturity date is the date when the security expires.
B3: The security’s annual coupon rate
B4: The security’s annual yield
B5: Coupon payments per year (semiannual = 2).
0: [optional] Day count basis.
NOTE: Dates in the formula must be entered using cell reference or DATE function. Excel date format creates #VALUE! error while computing results. Use the cell reference or DATE function in Excel while taking the date as input to the function. Now Press Enter to get the DURATION.
- After that, the formula returns the DURATION per $100 face value of a security that pays periodic interest.
Wrap-Up
Hope you understood how to use the DURATION Function In Excel Office 365. Please feel free to state your query or feedback for the above article. Thank you so much for Reading!! To learn more, check out Geek Excel!! *and Excel Formulas *!!
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