Bond Calculations Overview
The Bonds Form Calculator or Financial Bonds Calculator can be used to calculate price and yield to maturity of a bond given:
- The Coupon Rate
- The Yield to Maturity (to calculate price)
- The Price (to calculate the yield to maturity)
- Settlement Date
- Maturity Date
- The Date Basis (30/360, A/A, A/360, A/365, e30/360)
- The frequency (annual, semi-annual, quarterly)
- The call value (on the Financial: Bonds (call) Focused Calculator)
The Bonds Form Calculator uses the same data and functions as the Financial Bonds Calculator but has the advantages of using pickers for the dates, date basis and frequency.
To calculate Price (given yield) with more than on coupon period to redemption, the Financial Bonds Calculator uses Formula 7 from Standard Securities Calculation Methods: Fixed Income Securities Formulas, Volume 1.
Formula 7 does not take the settlement or maturity dates as arguments. The Financial Bonds Calculator (price() function) uses these dates, along with the date basis to calculate the accrued days, number of days from the settlement date to the next coupon date, number of days in the coupon period and remaining coupons payable.
Financial Bonds Examples
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