Bond Duration Calculator
Measure your bond's sensitivity to interest rate changes.
$
%
%
0.00 years
0.00
$0.00
Price Sensitivity
If yields increase by 1%, this bond's price would decrease by approximately 0%.
Duration Formulas
Macaulay Duration
D = Σ[t × PV(CFt)] / Price Weighted average time to receive cash flows
Modified Duration
ModD = Macaulay Duration / (1 + YTM/n) Price sensitivity measure
Frequently Asked Questions
What is bond duration?
Duration measures a bond's sensitivity to interest rate changes. A duration of 5 means the bond price will change ~5% for each 1% change in interest rates.
Macaulay vs Modified Duration?
Macaulay duration is the weighted average time to receive cash flows. Modified duration adjusts for yield and directly measures price sensitivity.
Why does duration matter?
Duration helps you understand interest rate risk. Higher duration means more price volatility when rates change.