Modified Duration Calculator Tool

Modified Duration Calculator

Modified Duration Calculator

Modified Duration Calculator

Component Description
Duration The weighted average time until a bond’s cash flows are received.
Yield to Maturity The total return anticipated on a bond if held until it matures.
Modified Duration A measure of a bond’s price sensitivity to changes in interest rates.
Formula Modified Duration = Duration / (1 + (Yield to Maturity / Number of Coupon Payments per Year))
Purpose Used to assess the interest rate risk of a bond or bond portfolio.

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