The DURATION function, one of the Financial functions, returns the Macauley duration for an assumed par value of $100. Duration is defined as the weighted average of the present value of cash flows, and is used as a measure of a bond price’s response to changes in yield.


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

Important: Dates should be entered by using the DATE function, or as results of other formulas or functions. For example, use DATE(2018,5,23) for the 23rd day of May, 2018. Problems can occur if dates are entered as text.

The DURATION function syntax has the following arguments:

BasisDay count basis
0 or omittedUS (NASD) 30/360
4European 30/360



Copy the example data in the following table, and paste it in cell A1 of a new Excel worksheet. For formulas to show results, select them, press F2, and then press Enter. If you need to, you can adjust the column widths to see all the data.

07/01/2018Settlement date
01/01/2048Maturity date
8.0%Percent coupon
9.0%Percent yield
2Frequency is semiannual (see above)
1Actual/actual basis (see above)
=DURATION(A2,A3,A4,A5,A6,A7)The duration, for the bond with the terms above10.9191453

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