Work out modified duration instantly with clear inputs, formula shown and shareable results.
Macaulay duration is the present-value weighted average time to receive a bond's cash flows. Dividing by one plus the yield gives modified duration, which reads directly as the percentage price fall for a one point rise in yield.
Duration
D_mac = Σ t·PV(CFₜ) / Price; D_mod = D_mac / (1 + y)
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
Because coupons return cash before maturity. Only a zero-coupon bond has duration equal to its maturity.
No. It is a first-order estimate; add the convexity term for moves beyond about 50 basis points.