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MDURATION: Calculating the duration of a security using the Macaulay's method

MDURATION: Calculating the duration of a security using the Macaulay's method: Excel 2016: Financial Functions in Depth
MDURATION: Calculating the duration of a security using the Macaulay's method: Excel 2016: Financial Functions in Depth

Another way to evaluate a bond is to use the modified DURATION, or MDURATION function. The MDURATION function divides a bond’s duration by 1 plus the market yield divided by the number of coupon payments per year. The resulting figure is more conservative than the straight duration calculation because it’s less sensitive to changes in yield.

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Skill Level Intermediate
2h 38m
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Business Spreadsheets Excel Microsoft Office

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