Microsoft KB Archive/93253

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Excel: Incorrect Example for MDURATION Function

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The information in this article applies to:


 * Microsoft Excel for Windows, version 4.0
 * Microsoft Excel for the Macintosh, version 4.0

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SUMMARY
The example for the MDURATION function on page 272 of the version 4.0 &quot;Microsoft Excel Function Reference&quot; is incorrect. The example uses incorrect serial numbers and percentages.

MORE INFORMATION
The example states that the settlement date is January 1, 1986, and that the maturity date is January 1, 1994. The serial numbers that are used in the arguments are incorrect.

The example uses 33239 which is the serial number for January 1, 1991, and it uses 36631 which is the serial number for April 15, 2000.

The listed coupon rate is 8-percent with the yield being 9-percent. However, the arguments for the coupon rate and yield are entered as &quot;0.8&quot; and &quot;0.9&quot;. These numbers must be entered as either &quot;.08&quot; and &quot;.09&quot; (without the quotation marks) or as &quot;8%&quot; and &quot;9%&quot; (without the quotation marks). If the arguments in the example are entered, the MDURATION will return the value &quot;.962958&quot; (without the quotation marks). For Microsoft Excel to return the value 5.73567 (the value that is given in the book), the function must be entered as:

  MDURATION(31413,34335,.08,.09,2,1)

Where 31413 is the serial number for January 1, 1986, and 34335 is the serial number for January 1, 1994.