Modified duration measures the percentage price change of a security in response to fluctuations in interest rates. It equals the Macaulay duration divided by one plus the yield per period. You can calculate it in Excel using the MDURATION function, which returns the Macauley modified duration for a security with an assumed par value of $100.

This open-access Excel template is a useful tool for bankers, investment professionals, corporate finance practitioners, portfolio managers, and anyone preparing a corporate presentation.

Modified Duration is among the topics included in the Fixed Income module of the CFA Level 1 Curriculum. Gain valuable insights into the subject with our Fixed Income Investments course.

You can also explore other related templates such as—Macaulay Duration, Effective Annual Yield, and Money Market Yield.