Bond Duration Calculator
Enter a bond's face value, coupon rate, yield to maturity, term, and payment frequency to calculate its price and interest-rate risk measures.
Last updated: September 1, 2026
Frequently asked questions
What is Macaulay duration?
The weighted-average time (in years) until a bond's cash flows are received, where each cash flow's weight is its present value's share of the total price - it's a measure of how long, on average, your money is tied up.
What is modified duration used for?
Estimating a bond's price sensitivity to interest rate changes - a modified duration of 4.3 means the price changes by approximately 4.3% for each 1 percentage point change in yield (in the opposite direction).
What is DV01?
"Dollar value of 01" - the actual dollar price change for a 1 basis point (0.01%) move in yield. It's the same concept as modified duration, just expressed in dollars for a specific price and a specific tiny yield move, rather than as a percentage.
What is convexity, and why does it matter alongside duration?
Convexity measures how much duration itself changes as yields change - duration alone is a straight-line (linear) approximation of price sensitivity, and convexity corrects for the fact that bond price/yield relationships actually curve, improving accuracy for larger yield changes.
Why does a longer-maturity, lower-coupon bond have higher duration?
Duration weights each cash flow by how far in the future it arrives - a lower coupon means more of the bond's value comes from the single face-value payment at maturity (rather than spread across earlier coupons), and a longer maturity pushes that payment further out, both of which increase the average weighted time.