Our online calculator will help you to make the calculation of duration of bonds with amortization.
Duration is the average of the indicator to know when you will return back the amount of money invested in the bond, subject to the flow of the coupon payments you receive over the period of ownership of the bond.
Duration lets you know the degree of dependence of the market price of a bond from changes in interest rates.
Duration of a bond is approximately equal to the magnitude of the price change of this bond at the interest rate (discount rate) by one percent.
Legend:
N is the number of time periods;
D is the number of days in one time period;
CFn is repaid part of the nominal value in percent for the n-th period of time, for conventional bonds, with no depreciation, you specify 100 for the last period of time, leaving other values set to 0.
r ( % ) is the coupon rate in percentage, corresponding to one period of time. For example, if the annual coupon is 10%, for the six-month period, the value (r) equal to 5%, for the quarterly period 2.5%.