1 Duration can be calculated using spreadsheet formulas. Data must be entered as follows: Settlement date Date is entered as DATE (year, month, day) Maturity date Date is entered as DATE (year, month, day) Coupon as a decimal Required yield as a decimal Frequency of payments Use the formula = DURATION(A1, A2, A3, A4, A5) for duration and = MDURATION (A1, A2, A3, A4, A5) for modified duration. ExampleCalculate the duration and modified duration for a 6 percent, seven year bond with a required yield of 5 percent. This is done as follows (note that dates are seven years apart, resulting in the format as illustrated): 2/16/2009 Settlement date = DATE(year,m,d) 2/16/2016 Maturity date = DATE(year,m,d) 0.06 Coupon rate as decimal 0.05 Required yield as decimal 2 Frequency of coupons 5.86 Macaulay duration 5.71 Modified duration