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=DURATION(settlement, maturity, coupon, yield, frequency, basis)=
=DURATION(SettlementDate, MaturityDate, Coupon, Yield, Frequency, Basis)=
*Where 'settlement' is the security's settlement date (a date when coupon or a bond is purchased),
*Where <math>SettlementDate</math> is the security's settlement date (a date when coupon or a bond is purchased),
*'maturity' is the security's maturity date (a date when coupon or a bond expires),
*<math>MaturityDate</math> is the security's maturity date (a date when coupon or a bond expires),
*'coupon' is the security's annual coupon rate,
*<math>Coupon</math> is the security's annual coupon rate,
*'yield' is the security's annual yield,
*<math>Yield</math> is the security's annual yield,
*'frequency' is the number of coupon payments per year, and
*<math>Frequency</math> is the number of coupon payments per year, and
*'basis' is the type of day count basis to use.
*<math>Basis</math> is the type of day count basis to use.
DURATION() gives the Macauley duration of a security for an assumed par value of $100.
DURATION() gives the Macauley duration of a security for an assumed par value of $100.
== Description ==
== Description ==
DURATION(settlement, maturity, coupon, yield, frequency, basis)
DURATION(SettlementDate, MaturityDate, Coupon, Yield, Frequency, Basis)
DURATION() calculates the rate of change of price with respect to yields. It is the weighted average time until cash flows are received.
DURATION() calculates the rate of change of price with respect to yields. It is the weighted average time until cash flows are received.
*Settlement and maturity dates should be entered either in 'date format' or 'dates returned using formulas'. If dates are not valid, Calci displays #N/A error message.
*<math>SettlementDate</math> and <math>MaturityDate</math> dates should be entered either in 'date format' or 'dates returned using formulas'. If dates are not valid, Calci displays #N/A error message.
*If settlement date ≥ maturity date, Calci displays #N/A error message.
*If <math>SettlementDate</math> date ≥ <math>MaturityDate</math> date, Calci displays #N/A error message.
*'coupon' and 'yield' values must be greater than or equal to zero.
*<math>Coupon</math> and <math>Yield</math> values must be greater than or equal to zero.
*The values for 'frequency' should be 1,2 or 4.
*The values for <math>Frequency</math> should be 1,2 or 4.
For Annual payment, frequency = 1,
For Annual payment, frequency = 1,
For Quarterly payment, frequency = 4.
For Quarterly payment, frequency = 4.
*'basis' value is optional. If omitted, Calci assumes it to be 0.
*<math>Basis</math> value is optional. If omitted, Calci assumes it to be 0.
Below table shows the use of 'basis' values:
Below table shows the use of <math>Basis</math> values:
{| class="wikitable"
{| class="wikitable"
|}
|}
*If 'basis' value is other than 0 to 4, Calci displays #N/A error message.
*If <math>Basis</math> value is other than 0 to 4, Calci displays #N/A error message.
== Examples ==
== Examples ==
|}
|}
=DURATION(A1,A2,A3,A4,A5,A6) ''displays 5.045790027952841'' as a result.
=DURATION(A1,A2,A3,A4,A5,A6) ''displays 5.045790027952841'' as a result.
=DURATION(DATE(2013,6,1),DATE(2013,12,31),"6%","8%",1,1) ''displays 1.9423897589712318'' as a result.
== See Also ==
== See Also ==