The easiest duration to calculate is that of a zero-coupon bond. This bond has zero yield, which means it does not pay any interest. Its duration is equal to its time to maturity. When a coupon is ...

To use the Duration function in Microsoft Excel, follow the steps below. Launch Excel Create a table or use an existing table Type the formula for the Duration function into the cell you want to ...

Estimating doubling time with the Rule of 72 is simple. You can use the formula below to calculate the doubling time in days, months, or years, depending on how the interest rate is expressed.

Over time, the interest portion shrinks ... the costs of an asset over the useful lifetime of that asset. The formula to calculate the monthly principal due on an amortized loan is as follows ...

The formula follows the standard duration calculation ... managers adjust interest rate exposure accordingly. Effective duration estimates a bond's overall price sensitivity to interest rate ...

Modified duration is a formula that measures the sensitivity ... Let’s also assume that the current interest rate is 7%. To calculate the modified duration for this bond, we first need to ...