# Manuals/calci/DURATION

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DURATION (Settlement,Maturity,Coupon,Yield,Frequency,Basis)

• Where is the security's settlement date (a date when coupon or a bond is purchased),
• is the security's maturity date (a date when coupon or a bond expires),
• is the security's annual coupon rate,
• is the security's annual yield,
• is the number of coupon payments per year, and
• is the type of day count basis to use.
• DURATION(), returns the annual duration of a security with periodic interest payments.

## Description

DURATION(Settlement, Maturity, 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.

• and 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 date ≥ date, Calci displays #N/A error message.
• and values must be greater than or equal to zero.
• The values for should be 1,2 or 4.

For Annual payment, frequency = 1,

For Semi-annual payment, frequency = 2,

For Quarterly payment, frequency = 4.

• value is optional. If omitted, Calci assumes it to be 0.

Below table shows the use of values:

Basis Description
0 US (NASD) 30/360
1 Actual/actual
2 Actual/360
3 Actual/365
4 European 30/365
• If value is other than 0 to 4, Calci displays #N/A error message.

## Examples

Consider the following example that shows the use of DURATION function:

 A B C 1 September 10, 2010 2 September 10, 2016 3 6% 4 9.0% 5 2 6 1
```=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 as a result.
```

DURATION