Calculation of Macaulay Duration using TI BA II Plus Professional

Pantho_Sarker · February 23, 2018, 5:22pm

Using the Bond function in my calculator I get the result of Duration. Is it modified duration or Macaulay Duration? Does the calculator consider Accrued Interest?

S2000magician · February 23, 2018, 5:27pm

Do the calculation for a 10-year, zero-coupon bond. If the duration is 10 years, it’s Macaulay duration; if the duration is slightly less than 10 years, it’s modified duration.

I’ve no idea about the accrued interest question, alas.

Pantho_Sarker · February 23, 2018, 5:30pm

I have checked it. It provides modified duration. Thank you.

S2000magician · February 23, 2018, 5:37pm

You’re welcome.