MDURATION function - The function returns the modified term according to Macauley of stock in Excel

MDURATION function - The function returns the Macauley modified term of a security with an initial assumption of $ 100 in Excel.

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:

MDURATION function - The function returns the modified term according to Macauley of stock in Excel Picture 1

Result:

MDURATION function - The function returns the modified term according to Macauley of stock in Excel Picture 2

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

Good luck!