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:
Result:
The above is the meaning and usage of the MDURATION function, which will hopefully be helpful for you.
Good luck!