Macaulay Duration
Calculator
Results
- Macaulay duration (years)
- 8.022533
- Modified duration (years)
- 7.568427
- Bond price
- 926.399129
Investing results
| Macaulay duration (years) | 8.022533 |
| Modified duration (years) | 7.568427 |
| Bond price | 926.399129 |
formula-map diagram
- Macaulay duration (years)
- 8.022533
- Modified duration (years)
- 7.568427
- Bond price
- 926.399129
Investing relationship
Formula
D = Σ t × PV(CFt) ÷ price, annual coupons= 8.022533650695
Note
This is not investment advice. It is a simplified model: it applies the displayed standard formula to the figures you entered, ignores taxes, fees, currency effects and credit risk, and assumes cash flows arrive exactly as scheduled. Real markets do not behave that way, and past or projected returns do not guarantee future results. Check the assumptions and consult a licensed adviser before acting on any figure.
More in Investing and markets
See all →Frequently asked questions
What does Macaulay duration measure?+
Macaulay duration measures the weighted average time (in years) it takes to receive a bond's cash flows, with each payment's timing weighted by the present value of that payment relative to the bond's total price. It's a measure of how long, on average, your money is tied up.
How is Macaulay duration different from a bond's maturity?+
Maturity is simply the date the bond fully repays, while duration accounts for all the interim coupon payments too — a bond paying coupons has a duration shorter than its maturity, since some cash flows arrive well before the final payment date.
How is Macaulay duration related to interest rate risk?+
Longer duration means greater sensitivity to interest rate changes — a bond with higher duration will see its price move more, in either direction, for a given change in yield compared to a bond with lower duration.
What's the difference between Macaulay duration and modified duration?+
Macaulay duration is expressed in years and measures the weighted average time to cash flows, while modified duration adjusts that figure to directly estimate the percentage price change of a bond for a 1% change in yield — modified duration is the more directly actionable risk metric.
Does a zero-coupon bond have a duration equal to its maturity?+
Yes, since a zero-coupon bond has only one cash flow (at maturity), its Macaulay duration exactly equals its time to maturity — there are no earlier coupon payments to pull the weighted average time shorter.