How to Use the MDURATION Function in Excel

This guide explains how to use MDURATION Function in Excel, including its syntax, required arguments, practical examples, and common errors.

The process of investing in securities if you know how to adjust and meet the right time, you will surely gain quite a profit. The following article introduces the MDURATION function, which helps you capture the timing of stock adjustment over time with a starting level of $ 100.

Description: The Macauley modified return function of a security with an initial assumption of $ 100.

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

Inside:

- settlement : the settlement date for securities is the date on which the security is purchased, which is a required parameter.

- maturity : The expiry date of a stock, also known as 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 : The number of times the coupon payment of the stock is required. The following values are available:

+ frequency = 1 => pay by year.

+ frequency = 2 => semi-annual payment.

+ frequency = 4 => payment quarterly.

- basis : As the basis determined to count days, arbitrary parameters. The following values are available:

+ basis = 0 => US date counting basis (NASD) 30/360: Number of days in a month is 30, number of days in a year is 360.

+ basis = 1 => The basis of counting days is the actual number of days in the month / the actual number of days per year.

+ basis = 2: The number of actual months / Days in the year is 360.

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

+ basis = 4: Number of days in the month is 30 / Number of days in the year is 360 according to European standards.

Attention:

- If settlement, maturity, frequency and basic are decimal => will be cut into whole numbers.

- If settlement, maturity is not a valid date => The function returns the value #VALUE!.

- If yld The function returns the value #NUM!.

- If basic 4 => the function returns the #NUM! Error.

- If settlement> = maturity => the function returns the #NUM!.

For example:

Calculating the deadline for adjusting securities when knowing the following parameters:

Result:

The above is the meaning and usage of the MDURATION function, which will hopefully be helpful for you.

Good luck!