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Institute of Investing

Bond Duration Calculator

Macaulay Duration (Years) 0.00
Modified Duration (%) 0.00

Methodology

Macaulay Duration: The weighted average time until all the bond's cash flows are received. It is measured in years.

Modified Duration: Measures the measurable change in the value of a security in response to a change in interest rates. A modified duration of 5.0 means the bond's price will drop by 5% if interest rates rise by 1%.

Assumes annual coupon payments for calculation simplicity.