duration

[Keith_river]

Hi there,
I want to use excel to calculate duration, but i don't know how to do it.

Term to maturity =30 years.
Coupon rate=3%
Yield to maturity=5%
coupon is annual payment.

I don't know how to set the formula.

THx very much for ur kindly help

 

[Fred Smith]

Try the following:
=DURATION(TODAY(),DATE(YEAR(TODAY())+30,MONTH(TODAY()),DAY(TODAY())),3%,5%,1)

I get 17.99 years.

Regards,
Fred.