What is the syntax for MDURATION in Excel?

The syntax for MDURATION is: =MDURATION(settlement, maturity, coupon, yld, frequency, [basis])

What is MDURATION (Modified Duration)?

MDURATION measures a bond's price sensitivity to interest rate changes. It estimates the percentage price change for a 1% change in yield. A bond with MDURATION of 5 will drop approximately 5% if rates rise 1%.

How do I use MDURATION for risk management?

Price change ≈ -MDURATION × yield change. If MDURATION=7 and rates rise 0.5%: price drops ≈ 7 × 0.5% = 3.5%. For a $100,000 bond position, that's a $3,500 loss. Use this to size positions and hedge interest rate risk.

How do I match duration for immunization?

To immunize a liability, match portfolio duration to liability duration. If you owe $1M in 5 years, build a bond portfolio with MDURATION ≈ 5. Rate changes will affect both assets and liabilities similarly, protecting your position.

Financial

MDURATION Function in Excel

Returns the modified Macaulay duration for a security.

Syntax

=MDURATION(settlement, maturity, coupon, yld, frequency, [basis])

Arguments

settlement (required): Settlement date
maturity (required): Maturity date
coupon (required): Annual coupon rate
yld (required): Annual yield
frequency (required): Payments per year
basis (optional): Day count basis

Examples

=MDURATION("1/1/2024", "1/1/2034", 0.08, 0.09, 2) - Modified duration - Result: Years

MDURATION modeling tips

Align rate and period units (annual rate ÷ 12 for monthly models).
Use consistent cash-flow signs (outflows negative, inflows positive).
Hub: [Financial functions guide](/guides/excel-financial-functions-guide/).

Common errors

#NUM! if parameters invalid

Use cases

Price sensitivity
Interest rate risk
Bond hedging

Frequently asked questions

What is MDURATION (Modified Duration)? MDURATION measures a bond's price sensitivity to interest rate changes. It estimates the percentage price change for a 1% change in yield. A bond with MDURATION of 5 will drop approximately 5% if rates rise 1%.
How do I use MDURATION for risk management? Price change ≈ -MDURATION × yield change. If MDURATION=7 and rates rise 0.5%: price drops ≈ 7 × 0.5% = 3.5%. For a $100,000 bond position, that's a $3,500 loss. Use this to size positions and hedge interest rate risk.
How do I match duration for immunization? To immunize a liability, match portfolio duration to liability duration. If you owe $1M in 5 years, build a bond portfolio with MDURATION ≈ 5. Rate changes will affect both assets and liabilities similarly, protecting your position.

Editorial review

Reviewed by Excel.Directory Editorial Team. Updated May 2026.