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A bond calculator is used to calculate the prices and yields of bonds and bond funds. The difficulty with computing this information lies in the fact that when prices go up rates go down and vice versa.

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Bond prices are more predictable compared to stocks as they have a fixed pre-defined schedule of future cashflows provided that the bond issuer does not default. Bond prices can be calculated as the present value of future cashflows. Investors can make use of Microsoft Excel functions for this. To calculate bond prices, one needs to input the settlement date maturity date, coupon, yield or discounting rate, par value (usually 100), coupon frequency and day count basis.

Bond Price =PRICE(settlement, maturity, rate, yld, redemption, frequency, [basis])

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bondevalue

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4y ago
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Q: What is a bond calculator used for?
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