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Real-world workflow

Use Case

Estimate Bond Duration Before Rates Move

Use Macaulay and modified duration to rough out how sensitive a bond’s price is to a 1% yield shift.

16 August 2026 By Tools.Town Team 5 min read

Steps

  1. Note face, coupon, maturity, and YTM (or compute YTM first).
  2. Open the Bond Duration Calculator.
  3. Read modified duration — roughly the % price change if yields rise 1%.
  4. Longer duration ⇒ more interest-rate sensitivity.

Frequently Asked Questions

Is −duration exact?

No — first-order approximation; large moves need convexity.