This bond has only one interest payment at maturity. Like all bonds, it can be sold before maturity. In this case, the seller is entitled to accrued interest, which is the interest from the date of issue until the date of sale. The buyer, on the other hand, receives all the interest from the date of issue until maturity at the end of the term (or accrued interest if the bond is sold again early). Depending on interest rate developments and other factors, the price and therefore the purchase price changes. The purchase price may, but does not have to, correspond to the nominal value of the bond. The interest is calculated on the nominal value. With this calculator, you can calculate the yield of the bond to compare it with other investment options.
Inputs:
1) Purchase Price: Enter the purchase price of the bond excluding accrued interest.
2) Nominal Value: Enter the nominal value of the bond. This is the face value printed on the bond and forms the basis for the interest calculation.
3) Issue Date: Enter the issue date of the bond. Interest will be calculated from this date.
4) Purchase Date: Enter the purchase date of the bond. The seller receives accrued interest from the issue date to the purchase date.
5) Maturity Date: Enter the repayment date of the bond. The bondholder receives the nominal value plus interest from the issue date to the repayment date.
6) Accrued Interest: The accrued interest is the interest from the issue date to the purchase date. If the purchase date, issue date, and face value are entered, the accrued interest will be calculated.
7) Interest Rate: Enter the bond's interest rate.
Results:
1) Maturity in days: The period from the issue date to the redemption date of the security in days is displayed.
2) Accrued interest at purchase (if not entered): The interest from the issue date to the purchase date is displayed. The buyer must pay this interest in addition to the purchase price.
3) Yield: The yield of the bond, taking into account the purchase price, maturity, and interest, is displayed. The yield allows for an objective comparison to other investment options.
