Modified Duration Calculator
Calculate Macaulay duration, modified duration, and dollar duration to measure bond price sensitivity to interest rate changes.
Important Financial Disclaimer
This calculator provides estimates based on standard financial formulas from verified references. Results are for informational and educational purposes only and should not be considered as professional financial, investment, or tax advice.
For important financial decisions such as loans, investments, mortgages, retirement planning, or tax matters, please consult with qualified financial advisors, certified financial planners, or licensed tax professionals who can review your specific situation.
Calculations may not account for all variables specific to your circumstances, local regulations, or current market conditions. Always verify results and consult professionals before making financial commitments.
Not a substitute for professional financial advice
Bond Details
Modified Duration measures the percentage price change for a 1% change in yield. Higher duration means greater interest rate sensitivity.
Modified Duration
7.922
years (price sensitivity measure)
Duration Metrics
Price Sensitivity
If rates rise by 1%:
Price falls by $85.70
(7.92% decrease)
If rates fall by 1%:
Price rises by $85.70
(7.92% increase)
Understanding Duration
- - Longer maturity = Higher duration
- - Higher coupon = Lower duration
- - Higher yield = Lower duration
- - Zero-coupon bonds have duration = maturity
Help us improve!
How would you rate the Modified Duration Calculator?
sources
- •Reserve Bank of India (RBI) — Financial regulations, lending rates, and monetary policy guidelines. rbi.org.in
- •Consumer Financial Protection Bureau (CFPB) — Consumer finance guidelines, mortgage and loan disclosure standards. consumerfinance.gov
- •Securities and Exchange Board of India (SEBI) — Investment and securities market regulations. sebi.gov.in
- •Investopedia — Financial formulas, definitions, and educational content. investopedia.com
For a complete list of all references used across the site, visit our full sources page.
Editorial Note
MyCalcBuddy Editorial Team
This page is maintained as an educational calculator reference.
Formula Source: Fundamentals of Financial Management
by Brigham & Houston