Enter Bond Inputs
Use the responsive grid below. It shows three columns on large screens, two on smaller screens, and one on mobile.
Example Data Table
Sample values below show how the calculator behaves with a semiannual coupon bond.
| Face Value | Coupon Rate | Years | Payments/Year | Yield Rate | Tax Rate | Inflation | Reinvestment | Bond Price | Periodic Coupon |
|---|---|---|---|---|---|---|---|---|---|
| $1,000.00 | 6.00% | 5.00 | 2 | 5.20% | 15.00% | 3.00% | 4.50% | $1,034.83 | $30.00 |
| Total Gross Cash: $1,300.00 | Total After-Tax Cash: $1,255.00 | Macaulay Duration: 4.4054 years | |||||||
Formula Used
Coupon per period = Face Value × Coupon Rate ÷ Payments per Year
Gross Cash Flow(t) = Coupon + Principal at maturity
Discount Factor(t) = 1 ÷ (1 + Yield ÷ Payments per Year)^t
Present Value(t) = Gross Cash Flow(t) × Discount Factor(t)
Bond Price = Sum of all present values
After-Tax Cash Flow(t) = Coupon × (1 − Tax Rate) + Principal if final period
Real Cash Flow(t) = After-Tax Cash Flow(t) ÷ (1 + Inflation ÷ Payments per Year)^t
Future Value at Maturity = Sum of After-Tax Cash Flow(t) grown by the reinvestment rate
Macaulay Duration = Sum[Time(t) × Present Value(t)] ÷ Bond Price
Modified Duration = Macaulay Duration ÷ (1 + Yield ÷ Payments per Year)
How to Use This Calculator
- Enter the bond face value and annual coupon rate.
- Choose years to maturity and payment frequency.
- Set the yield or discount rate you want to test.
- Enter redemption value if it differs from face value.
- Add tax, inflation, and reinvestment assumptions if needed.
- Optionally set the first payment date for dated cash flow labels.
- Press the calculate button to show the result above the form.
- Review the summary cards, chart, and detailed cash flow schedule.
- Use the CSV or PDF buttons to export the results.
FAQs
1. What does this calculator measure?
It builds a full bond payment schedule and values each cash flow. You can estimate coupon income, maturity repayment, present value, after-tax cash flow, and reinvested maturity value in one place.
2. Why is bond price different from face value?
Bond price depends on discounting future cash flows by the selected yield. If the coupon rate is above yield, price usually rises above face value. If coupon rate is below yield, price usually falls below face value.
3. What is the discount factor used for?
The discount factor converts each future payment into today’s value. It accounts for time value of money and your chosen yield assumption, helping you estimate a fair bond price.
4. Why include tax and inflation?
Tax reduces coupon income, while inflation reduces future purchasing power. Including both gives a more realistic view of what the bond may contribute to real portfolio income.
5. What does Macaulay duration mean?
Macaulay duration is the weighted average time needed to receive the bond’s present-valued cash flows. It is commonly used to understand interest-rate sensitivity and cash flow timing.
6. What is modified duration?
Modified duration adjusts Macaulay duration for yield compounding. It estimates how much the bond price may change for a small change in yield, making rate risk easier to interpret.
7. Can I use this for zero-coupon bonds?
Yes. Set the coupon rate to zero. The calculator will then show no interim coupon payments and one final maturity payment, which is the standard zero-coupon structure.
8. What does future value at maturity show?
It estimates how much your after-tax cash flows could grow to by maturity when each payment is reinvested at the chosen reinvestment rate. It is useful for income planning scenarios.