Model real returns, adjusted principal, coupon schedules, and break-even changes. Test frequency and CPI assumptions. Understand indexed bond performance with practical outputs and visuals.
Enter real bond assumptions, CPI values, and payment details. Submit to estimate indexed principal, coupons, price, and projected cash flow schedule.
| Face Value | Coupon Rate | Real Yield | Years | Payments | Base CPI | Current CPI | Expected Inflation |
|---|---|---|---|---|---|---|---|
| 1,000 | 2.50% | 1.80% | 10 | 2 | 250.00 | 275.00 | 3.20% |
| 5,000 | 1.90% | 1.20% | 7 | 2 | 260.20 | 281.40 | 2.70% |
| 10,000 | 3.10% | 2.20% | 15 | 4 | 240.50 | 294.70 | 3.80% |
Index Ratio = Current CPI / Base CPI
Effective Index Ratio = Index Ratio × (1 + expected inflation)-lag/12
Adjusted Principal = Face Value × Effective Index Ratio × (1 + periodic inflation)period
Coupon Payment = Adjusted Principal × (Annual Coupon Rate / Payments Per Year)
Present Value = Cash Flow / (1 + Real Yield / Payments Per Year)period
Bond Price = Sum of all discounted coupon and principal cash flows
Macaulay Duration = Sum of time × present value / Bond Price
Modified Duration = Macaulay Duration / (1 + Real Yield / Payments Per Year)
Break-Even Nominal Yield ≈ (1 + real yield) × (1 + expected inflation) − 1
Start with the bond face value, coupon rate, real yield, and years to maturity. Select the coupon payment frequency matching the bond contract.
Enter the base CPI from bond issuance and the current CPI used for indexation. Add expected inflation to project future coupon and redemption values.
Use tax rate if you want a rough after-tax cash flow view. Add CPI lag months when the bond references delayed inflation data.
Press the calculate button. Review indexed principal, estimated price, duration, schedule rows, and the chart showing coupon and maturity cash flow patterns.
Download the schedule as CSV for analysis or create a PDF summary for reporting, client presentations, or personal portfolio records.
It estimates indexed principal, coupon payments, redemption value, present value, duration, and projected cash flows using CPI data, real yield, and expected inflation assumptions.
CPI drives the index ratio that adjusts principal. When CPI rises, future coupon amounts and the maturity payment usually rise because they are based on indexed principal.
Real yield is the return before adding inflation effects. The calculator discounts projected indexed cash flows using this real rate to estimate bond value.
Yes. It projects nominal coupon and redemption cash flows from indexed principal. It also gives a break-even style nominal yield estimate from real yield and inflation input.
Duration estimates price sensitivity to yield changes. Higher duration means bond prices generally move more when real yields rise or fall.
Yes. Some bonds use lagged inflation readings. The lag field approximates that delay by slightly reducing the effective current index factor used in valuation.
No. It is a simple estimate. Real tax treatment varies by country, account type, inflation accretion rules, and local regulations.
Export CSV when you need spreadsheet analysis or model review. Export PDF when you want a clean snapshot for reports, clients, or internal records.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.