Instructions: Fill in the spaces that correspond to the number of years, maturity, coupon rate, and yield-to-maturity, followed by clicking on the "Compute" button.
Certificates of Deposits (CDs) offer great yields compared to newly purchased savings bonds.
Bond value: Given the face value, coupon rate, coupon compounding interval, years to maturity, and the current market rate, this is the price the bond should be trading.Conversely, if the current market rate is above the coupon rate, then the bond should be selling at a discount (price less than par value).or "How do bonds work?OR- If less than "A what change(s) would earn the calculator a higher grade?(Please tell me what you entered so I can track down and fix the problem.) * If you gave it an "A what did you like most about it, or how did it help you?In this case, using the bond valuation formula that's built into the bond value calculator, we can see that an investor should be willing to purchase your 1,000 bond for 1,042.12, as that price would still net the investor the same total return as the.Based on a demo from Netscape.C - Okay, but missing important feature(s)."I'm new to your website and I love.Return to Top of Calculator Return to Top of Page 1 m 1 Page Site.Why Bond Prices and Interest Rates Move In Opposite Directions To illustrate why bond prices and market interest rates tend to move in opposite directions, suppose you purchased a 5-year, 1,000 bond at face value that was paying a 7 coupon rate.
After all, no one would be willing to buy bonds at par value if the bonds were paying lower interest rates than the prevailing rates, and issuers would not issue bonds if doing so would cause them to pay a higher interest rate than.
And it's a good thing they have this inverse relationship.
Next enter the current market rate and the number of years to maturity, then click the "Calculate Bond Price" button.