What Is Bond Duration? Definition, Formula & Examples. Understanding duration can help investors decide which bonds are right for them. Author: Laura Rodini. Updated: Feb 7, 2023 2:47 PM EST.

Example of How to Use Modified Duration Assume a $1,000 bond has a three-year maturity, pays a 10% coupon, and that interest rates are 5%. This bond, following the basic bond pricing formula ...

Macaulay Duration: Definition, How It Works, Formula, and Example What an Inverted Yield Curve Tells Investors Convexity in Bonds: Definition, Meaning, and Examples ...

Example Example of how to use modified duration. Let's suppose you have a bond with a face value of $1,000 that matures in three years. This bond has an annual coupon rate (the yield paid through ...

Duration 5 minutes What You Need Microsoft Excel. An ... For our example, ChatGPT provided this formula to add up all the cells in Column B, from B2 to B11: =SUM(B2:B11).