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).
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.