DURATION function - The function returns the periodic periodic interest payments in Excel

The following article details how to use the DURATION function to determine the period of periodic interest payment.

The following article details how to use the DURATION function to determine the period of periodic interest payment.

Description: The function that returns the validity of a bond is a weighted average of the current value of the cash flow.

Syntax: DURATION (settlement, maturity, coupon, yld, frequency, [basis]) .

Inside:

- settlement : The settlement date of a security is the date securities are sold to buyers after the issuance date, which is a required parameter.

- maturity : The expiry date of the stock, or the maturity date, is a required parameter.

- Coupon : The annual coupon rate of the security, is a required parameter.

- yld : Annual profit of the securities, is a mandatory parameter.

- frequency : Number of interest payment times per year, a required parameter.

- basis : The basis determined to calculate the number of days, is an optional parameter. The following values ​​are available:

+ basis = 0: Calculates the number of days according to US standards, the number of days / year is 30/360.

+ basis = 1: The number of days / year is the actual number of days on the month / number of actual days per year.

+ basis = 2: The number of days / year is the actual number of days on the month / days on the year is 360.

+ basis = 3: The number of days / year is the actual number of days on the month / days on the year is 365.

+ basis = 4: Calculating the number of days according to European standards, the number of days / year is 30/360.

Attention:

- If the input parameters are decimal numbers => the function takes an integer part of the parameters.

- If the settlement date and expiry date of the CK are invalid => The function returns the error value #VALUE !.

- If coupon The function returns the #NUM error value.

- If frequency is outside the value set {1, 2, 4} => returns the #NUM! Error value

- If basis is outside the value set {0, 1, 2, 3, 4} => returns the #NUM! Error value

- If the expiration date is less than the settlement date => the function returns the #NUM! Error value.

For example:

With the following table, calculate the period of time to pay interest annually.

DURATION function - The function returns the periodic periodic interest payments in Excel Picture 1DURATION function - The function returns the periodic periodic interest payments in Excel Picture 1

In the cell to calculate enter the following formula: = DURATION (D6, D7, D8, D9, D10, D11) .

DURATION function - The function returns the periodic periodic interest payments in Excel Picture 2DURATION function - The function returns the periodic periodic interest payments in Excel Picture 2

After pressing Enter the result is:

DURATION function - The function returns the periodic periodic interest payments in Excel Picture 3DURATION function - The function returns the periodic periodic interest payments in Excel Picture 3

Thus, the term of bonds with the above terms is 1,927235704.

Above is the instruction for using the DURATION function.

Good luck!

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