Difference between revisions of "Documentation/How Tos/Calc: DURATION function"

From Apache OpenOffice Wiki
Jump to: navigation, search
m
 
Line 1: Line 1:
−
{{Documentation/MasterTOC
+
{{DISPLAYTITLE: DURATION function}}
−
|bookid=1234'''
+
{{Documentation/CalcFunc FinancialTOC
−
|booktitle=<div style="padding: 8px; font-size: 140%; font-weight: bold; background-color: #9BC0F5;">CALC FUNCTIONS</div>
+
|ShowPrevNext=block
−
|ShowParttitle=block|parttitle=[[Documentation/How_Tos/Calc:_Financial_functions|<div style="font-size: 140%;">Financial Functions]]
+
|PrevPage=Documentation/How_Tos/Calc:_DISC_function
−
|ShowNextPage=block|NextPage=Documentation/How_Tos/Calc:_DURATION_ADD_function
+
|NextPage=Documentation/How_Tos/Calc:_DURATION_ADD_function
−
|ShowPrevPage=block|PrevPage=Documentation/How_Tos/Calc:_DISC_function
+
}}__NOTOC__
−
|ShowPrevPart=block|PrevPart=Documentation/How_Tos/Calc:_Date_%26_Time_functions
+
−
|ShowNextPart=block|NextPart=Documentation/How_Tos/Calc:_Information_functions
+
−
|toccontent= <div style="padding: 4px; font-size: 130%; font-weight: hidden; background-color:#DCE9FC;">FUNCTIONS</div>
+
−
 
+
−
<div style="font-size: 140%; border-style: outset outset outset none; border-color:#DCE9FC;">Depreciation</div>
+
−
* [[Documentation/How_Tos/Calc:_AMORDEGRC_function|<div style="font-size: 120%;">Amordegrc]]
+
−
* [[Documentation/How_Tos/Calc:_AMORLINC_function|<div style="font-size: 120%;">Amorlinc]]
+
−
* [[Documentation/How_Tos/Calc:_DB_function|<div style="font-size: 120%;">Db]]
+
−
* [[Documentation/How_Tos/Calc:_DDB_function|<div style="font-size: 120%;">Ddb]]
+
−
* [[Documentation/How_Tos/Calc:_SLN_function|<div style="font-size: 120%;">Sln]]
+
−
* [[Documentation/How_Tos/Calc:_SYD_function|<div style="font-size: 120%;">Syd]]
+
−
* [[Documentation/How_Tos/Calc:_VDB_function|<div style="font-size: 120%;">Vdb]]
+
−
 
+
−
<div style="font-size: 140%; border-style: outset outset outset none; border-color:#DCE9FC;">Payment Streams, Annuities, Loans</div>
+
−
* [[Documentation/How_Tos/Calc:_CUMIPMT_function|<div style="font-size: 120%;">Cumipmt]]
+
−
* [[Documentation/How_Tos/Calc:_CUMIPMT_ADD_function|<div style="font-size: 120%;">Cumipmt Add]]
+
−
* [[Documentation/How_Tos/Calc:_CUMPRINC_function|<div style="font-size: 120%;">Cumprinc]]
+
−
* [[Documentation/How_Tos/Calc:_CUMPRINC_ADD_function|<div style="font-size: 120%;">Cumpinc Add]]
+
−
* [[Documentation/How_Tos/Calc:_FV_function|<div style="font-size: 120%;">Fv]]
+
−
* [[Documentation/How_Tos/Calc:_FVSCHEDULE_function|<div style="font-size: 120%;">Fvschedule]]
+
−
* [[Documentation/How_Tos/Calc:_IPMT_function|<div style="font-size: 120%;">Ipmt]]
+
−
* [[Documentation/How_Tos/Calc:_IRR_function|<div style="font-size: 120%;">Irr]]
+
−
* [[Documentation/How_Tos/Calc:_ISPMT_function|<div style="font-size: 120%;">Ispmt]]
+
−
* [[Documentation/How_Tos/Calc:_MIRR_function|<div style="font-size: 120%;">Mirr]]
+
−
* [[Documentation/How_Tos/Calc:_NPER_function|<div style="font-size: 120%;">Nper]]
+
−
* [[Documentation/How_Tos/Calc:_NPV_function|<div style="font-size: 120%;">Npv]]
+
−
* [[Documentation/How_Tos/Calc:_PMT_function|<div style="font-size: 120%;">Pmt]]
+
−
* [[Documentation/How_Tos/Calc:_PPMT_function|<div style="font-size: 120%;">Ppmt]]
+
−
* [[Documentation/How_Tos/Calc:_PV_function|<div style="font-size: 120%;">Pv]]
+
−
* [[Documentation/How_Tos/Calc:_RATE_function|<div style="font-size: 120%;">Rate]]
+
−
* [[Documentation/How_Tos/Calc:_RRI_function|<div style="font-size: 120%;">Rri]]
+
−
* [[Documentation/How_Tos/Calc:_XIRR_function|<div style="font-size: 120%;">Xirr]]
+
−
* [[Documentation/How_Tos/Calc:_XNPV_function|<div style="font-size: 120%;">Xnpv]]
+
−
 
+
−
<div style="font-size: 140%; border-style: outset outset outset none; border-color:#DCE9FC;">Securities</div>
+
−
* [[Documentation/How_Tos/Calc:_ACCRINT_function|<div style="font-size: 120%;">Accrint]]
+
−
* [[Documentation/How_Tos/Calc:_ACCRINTM_function|<div style="font-size: 120%;">Accrintm]]
+
−
* [[Documentation/How_Tos/Calc:_DISC_function|<div style="font-size: 120%;">Disc]]
+
−
* [[Documentation/How_Tos/Calc:_DURATION_function|<div style="font-size: 120%; border-style: double; border-color:#778899;">Duration]]
+
−
* [[Documentation/How_Tos/Calc:_DURATION_ADD_function|<div style="font-size: 120%;">Duration Add]]
+
−
* [[Documentation/How_Tos/Calc:_EFFECTIVE_function|<div style="font-size: 120%;">Effective]]
+
−
* [[Documentation/How_Tos/Calc:_EFFECT_ADD_function|<div style="font-size: 120%;">Effect Add]]
+
−
* [[Documentation/How_Tos/Calc:_INTRATE_function|<div style="font-size: 120%;">Intrate]]
+
−
* [[Documentation/How_Tos/Calc:_MDURATION_function|<div style="font-size: 120%;">Mduration]]
+
−
* [[Documentation/How_Tos/Calc:_DURATION_ADD_function|<div style="font-size: 120%;">Duration Add]]
+
−
* [[Documentation/How_Tos/Calc:_NOMINAL_function|<div style="font-size: 120%;">Nominal]]
+
−
* [[Documentation/How_Tos/Calc:_NOMINAL_ADD_function|<div style="font-size: 120%;">Nominal Add]]
+
−
* [[Documentation/How_Tos/Calc:_ODDFPRICE_function|<div style="font-size: 120%;">Oddfprice]]
+
−
* [[Documentation/How_Tos/Calc:_ODDFYIELD_function|<div style="font-size: 120%;">Oddfyield]]
+
−
 
+
−
<div style="font-size: 140%; border-style: outset outset outset none; border-color:#DCE9FC;">Coupons</div>
+
−
* [[Documentation/How_Tos/Calc:_COUPDAYBS_function|<div style="font-size: 120%;">Coupdaybs]]
+
−
* [[Documentation/How_Tos/Calc:_COUPDAYS_function|<div style="font-size: 120%;">Coupdays]]
+
−
* [[Documentation/How_Tos/Calc:_COUPDAYSNC_function|<div style="font-size: 120%;">Coupdaysnc]]
+
−
* [[Documentation/How_Tos/Calc:_COUPNCD_function|<div style="font-size: 120%;">Coupncd]]
+
−
* [[Documentation/How_Tos/Calc:_COUPNUM_function|<div style="font-size: 120%;">Coupnum]]
+
−
* [[Documentation/How_Tos/Calc:_COUPPCD_function|<div style="font-size: 120%;">Couppcd]]
+
−
 
+
−
<div style="font-size: 140%; border-style: outset outset outset none; border-color:#DCE9FC;">Miscellaneous</div>
+
−
 
+
−
* [[Documentation/How_Tos/Calc:_DOLLARDE_function|<div style="font-size: 120%;">Coupdaybs]]
+
−
* [[Documentation/How_Tos/Calc:_DOLLARFR_function|<div style="font-size: 120%;">Coupdays]]
+
−
}}__TOC__
+
  
 
== DURATION ==
 
== DURATION ==

Latest revision as of 10:50, 31 January 2024

DURATION

Returns the number of periods needed for an investment to reach a certain value.

Syntax:

DURATION(rate; present_value; future_value)

rate: the interest rate per period that will apply to the investment.
present_value: the value of the investment now.
future_value: the desired value of the investment in the future.
DURATION returns an estimate of the number of periods required to turn present_value into future_value at a constant interest rate of rate, compounded each period.
It solves the equation:
present_value * (1 + rate)duration = future_value,
giving a result:
DURATION(rate; present_value; future_value) = LOG(future_value/present_value; 1 + rate).
The result is exact for whole periods, and approximate for partial periods.

Example:

DURATION(10%; 100; 121)

returns 2. $100 invested at a 10% compounded annual rate is worth $110 next year and $121 in two years time.

Issues:

  • Calc's DURATION function is implemented as G_DURATION in Gnumeric, and is not implemented in Excel.
  • The DURATION function as implemented in Gnumeric and Excel (Macaulay duration) is implemented as DURATION_ADD in Calc.
  • The inexactness for fractional periods arises because interest is calculated linearly during a period. For example, $100 at 10% is worth $105 in half a year, yet DURATION(10%; 100; 105) does not return exactly 0.5. This may be of more theoretical than practical importance.



See Also
Retrieved from "https://wiki.openoffice.org/w/index.php?title=Documentation/How_Tos/Calc:_DURATION_function&oldid=259756"
Views
Personal tools
Navigation
Tools
In other languages