Bond Duration & Price Sensitivity Calculator
Bond prices move inversely with interest rates, and duration measures how sensitive a bond's price is to those rate changes. Enter your bond's coupon rate, yield, face value, and maturity to estimate its duration and project the price impact of a rate move.
About this calculator
Calculate a bond's Macaulay duration, modified duration, and estimated price change for a given shift in interest rates.
Frequently Asked Questions
What is Macaulay duration?
Macaulay duration is the weighted average time until a bond's cash flows are received, measured in years, using present value as weights.
What is modified duration used for?
Modified duration estimates the percentage change in a bond's price for a 1% change in yield, making it a key measure of interest rate risk.
Why does the bond price move opposite to interest rates?
When market rates rise, existing bonds with lower fixed coupons become less attractive, so their price must fall to offer a competitive yield, and vice versa.