Business Finance Online

Bond Calculator: Introduction


The Bond Calculator can be used to Price Bonds and to determine the Yield-to-Maturity and Yield-to-Call on Bonds. It works similarly to the Time Value Of Money functions of the Texas Instruments BA II Plus calculator.

  1. Bond Price Field - The Price of the bond is displayed or entered in this field.
  2. Coupon Field - The Coupon Payment is displayed or entered in this field. For a Semiannual Coupon Bond the amount displayed or entered is the semiannual Coupon Payment.
  3. Face Value Field - The Face Value or Principal of the bond is displayed or entered in this field.
  4. Yield Field - The Bond Yield is displayed or entered in this field.
  5. Periods Field - The number of Periods remaining until maturity is displayed or entered in this field. For a Semiannual Coupon Bond, this represents the number of six month periods remaining until maturity, i.e., the number of years remaining times two.
  6. Compounding Field - The value selected in this pop-up represents the compounding frequency for the Bond Yield and the frequency of the Coupon Payments, i.e., whether the bond is a Semiannual or Annual Coupon Bond.
  7. Buttons - Press these buttons to calculate the corresponding value.
    • Price Button - Press to calculate the Bond Price.
    • Coupon Button - Press to calculate the Coupon Payment.
    • Face Value Button - Press to calculate the Face Value.
    • Yield Button - Press to calculate the Bond Yield.
    • Periods Button - Press to calculate the Number of Periods remaining until Maturity.


Now you are ready to use the Bond Calculator.

 

© 2002 - 2010 by Mark A. Lane, Ph.D.