# MDURATION Function in Excel

In this post, you will be guided through simple and easy-to-follow steps on how to use the MDURATION function in Excel

Microsoft Office Excel provides the MDURATION function, which returns the Macauley modified duration for a security with an assumed par value of \$100. In simpler words, it calculates the duration of a security using the Modified Macauley method. This is a built-in Excel function under the Finance category

## MDURATION  Syntax

`=MDURATION(settlement, maturity, coupon, yld, frequency, [basis])`

## The MDURATION function and arguments

• settlement (required) – The settlement date of the security.
• maturity (required) – The maturity date of the security.
• coupon (required) – The security’s annual coupon rate.
• yld (required) – The security’s annual yield.
• freq (required)– The number of coupon payments per year (annual = 1, semi-annual = 2, quarterly = 4).
• basis (optional)– Day count basis (default = 0).

## How to use MDURATION  function in Excel?

• As said in the description, you need the values of all the above arguments to carry out the MDURATION function and get the correct and desired Duration of security.
• Enter the arguments in the same order of the syntax, one below the other, as shown in the picture below.
• At this time, in a similar way enter the values of each of the arguments in their corresponding adjacent cells in the worksheet.
• Below the tabulated list of arguments, select a cell and enter “Duration of security”, the cell to the right will display the value of the formula (making identification easier).
• When entering the formula, always start with the “=” operator. After entering the “=” operator enter MDURATION  to initiate the formula followed by an open parenthesis. Excel recognizes “=’ as the start of a formula, if not included, excel will not accept and evade the execution of the function.
• With the parenthesis open, select the first argument value. The position of the cell will be visible in the formula. According to the order of the syntax, the value of the argument must be selected followed by a comma. The change in color of the cells aids to identify the name of the cells in the formula.
• To conclude, close the parentheses and click enter. The cell which contains the formula will display the Duration of security.