Toolopedia

Duration & Convexity Calculator

An advanced tool for fixed-income investors to measure a bond's sensitivity to interest rate changes. This calculator computes both Macaulay Duration and Modified Duration, which estimate the percentage change in a bond's price for a 1% change in interest rates. It also calculates Convexity, which refines the duration estimate and accounts for the curvature in the bond price-yield relationship. These metrics are essential for managing interest rate risk in a bond portfolio.

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