annual-yield: A number value representing the annual yield of the security. annual-yield must be greater than 0, and is entered as a decimal (for example, 0.08) or with a percent sign (for example, 8%).
frequency: A European method for dates falling on the 31st of a month.
This function returns a value known as the modified Macaulay duration. In contrast to Macaulay duration (BONDDURATION), modified duration is defined as the percentage change in price with respect to a 1 percent change in yield and is considered a measure of price sensitivity. It uses the bond’s yield to maturity to calculate the discount factors.
The currency shown in this function result depends on your Language & Region settings (in System Preferences in macOS 12 and earlier, System Settings in macOS 13 and later, and Settings in iOS and iPadOS), or on your Time Zone & Region settings in iCloud Settings.
Example
Suppose you are considering the purchase of a hypothetical security. The purchase will settle April 2, 2010 (settle) and will mature on December 31, 2015 (maturity). The coupon rate is 5% (annual-rate). The stated yield is 5.284% (annual-yield). The bond pays interest quarterly (frequency), based on actual calendar days (days-basis).
=BONDMDURATION("4/2/2010", "12/31/2015", 0.05,0.05284,4,1) returns approximately 4.95538808340513, the approximate percentage change in the securities price based on a 1 percent change in its annual yield.