The duration of a bond with a settlement date of May 27,2020 and maturity date November 15, 2031. Introduction: Modified duration: It states how changes in interest rate affects the bond’s durations. The syntax used in Excel is = M D u r a t i o n ( S e t t l e m e n t d a t e , m a t u r i t y d a t e , c o u p o n r a t e , y i e l d t o m a t u r i t y , f r e q u e n c y , b a s i s ) as optional.

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Chapter 16, Problem 19PS

Summary Introduction

To calculate: The duration of a bond with a settlement date of May 27,2020 and maturity date November 15, 2031.

Introduction:

Modified duration: It states how changes in interest rate affects the bond’s durations. The syntax used in Excel is

=MDuration(Settlement date, maturity date, coupon rate, yield to maturity, frequency, basis) as optional.

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