How does the Bond Yield Rates Calculator work?
Free Bond Yield Rates Calculator - Calculates the yield rate of bonds using the Yield Approximation Method or the Bond Salesman Method.
This calculator has 5 inputs.
This calculator has 5 inputs.
What 4 formulas are used for the Bond Yield Rates Calculator?
g = Face * Coupon%/Redemption Value
k = (Price - Redemption Value)/Redemption Value
Yield Approximation Rate (i) = (g - (k/n))/(1 + (k(n + 1)/2n))
Bond Salesman Rate (i) = (g - (k/n))/(1 + 0.5k)
For more math formulas, check out our Formula Dossier
k = (Price - Redemption Value)/Redemption Value
Yield Approximation Rate (i) = (g - (k/n))/(1 + (k(n + 1)/2n))
Bond Salesman Rate (i) = (g - (k/n))/(1 + 0.5k)
For more math formulas, check out our Formula Dossier
What 7 concepts are covered in the Bond Yield Rates Calculator?
- bond
- a type of security under which the issuer owes the holder a debt, and is obliged – depending on the terms – to repay the principal of the bond at the maturity date as well as interest over a specified amount of time.
- bond yield rates
- the amount a bond pays out in interest
- coupon
- the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity.
- discount
- the amount by which the market price of a bond is lower than its principal amount due at maturity
- premium
- a bond which market value is greater than its face value
- price
- the amount of money expected, required, or given in payment for something
- yield
- How much an investment returns in terms of interest rate
Bond Yield Rates Calculator Video
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