An 8%, 30-year corporate bond was recently being priced to yield 10%.The Macaulay duration for the bond is 10.20 years.Given this information, the bond's modified duration would be

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The modified duration is calculated as Macaulay Duration / (1 + (YTM / number of coupon periods per year)). Assuming semi-annual coupons, which is common for corporate bonds, the calculation would be 10.20 / (1 + (0.10 / 2)) = 10.20 / 1.05 = 9.27.

An 8%, 30-Year Corporate Bond Was Recently Being Priced to Yield