Model coupon income, price sensitivity, and tax benefits precisely. Review risk metrics quickly and easily. Make smarter municipal bond choices with consistent scenario comparisons.
Illustrative sample scenarios for benchmarking. Values are examples only and not investment advice.
| Bond | Par | Coupon | Price % | Years | Payments | Fed/State/Local Tax |
|---|---|---|---|---|---|---|
| City Water Rev A | $10,000 | 4.25% | 98.50 | 12 | 2 | 32 / 5 / 1 |
| County School GO | $25,000 | 3.90% | 101.20 | 8 | 2 | 24 / 4 / 0 |
| Transit Authority Rev | $50,000 | 5.10% | 104.75 | 15 | 2 | 35 / 9 / 2 |
| Healthcare District GO | $100,000 | 2.85% | 92.30 | 20 | 2 | 37 / 6 / 1 |
Face Value × (Price % ÷ 100)Coupon per payment × (Days since coupon ÷ Days in period)Clean price + Accrued interestAnnual coupon income ÷ Bond pricePrice = Σ [Cash Flow_t ÷ (1 + y/m)^t]Muni yield × Muni after-tax factorMuni after-tax yield ÷ Taxable after-tax factorMacaulay duration ÷ (1 + y/m)-Duration×Δy + 0.5×Convexity×Δy²This tool is designed for planning and comparison. Always confirm official pricing, tax treatment, and call provisions with offering documents and a qualified advisor.
Municipal bonds are judged by price, coupon, maturity, yield consistency, and call features for investors. This calculator brings those factors together so users can test a bond’s quoted market level against expected income. Entering par, coupon rate, and price percent reveals whether the bond trades at a premium or discount. That quick classification supports better screening before deeper credit analysis, especially when comparing multiple bonds with different maturities and coupon structures.
Tax treatment often drives municipal bond decisions more than headline yield in practice. The calculator estimates federal, state, and local tax effects, then applies exemption choices to show municipal after-tax income and taxable-equivalent yield. This lets investors compare a tax-exempt bond with taxable alternatives on a consistent basis. The comparison field also evaluates an optional taxable bond yield, helping users explain which option appears stronger after estimated taxes before purchase decisions.
Bond quotes are commonly shown as clean price, but transactions settle using dirty price with accrued interest included. The calculator estimates accrued interest from elapsed coupon days and total period days, then uses the dirty price for yield solving. This improves practical accuracy because investors pay the full settlement amount. Timing inputs also help users test different settlement assumptions and understand why identical coupons can produce slightly different quoted yields in practice.
Yield alone does not describe rate risk or price volatility under stress. The calculator also estimates Macaulay duration, modified duration, and convexity from discounted cash flows, then projects price sensitivity for 50 and 100 basis point moves. These outputs give a useful stress test for portfolio discussions and rebalancing decisions. Users can compare shorter and longer bonds, measure interest-rate exposure, and identify holdings that may react more sharply to changing market conditions today.
This tool supports ladder design, income planning, and callable bond evaluation across scenarios. When call price and years to call are entered, it calculates yield to call and yield to worst, which are essential for conservative income analysis. Exportable CSV and PDF results make it easier to document assumptions for reviews or client files. The output remains an estimate, but it provides a disciplined foundation for municipal bond decision-making and communication across teams.
Yield to worst is the lower of yield to maturity and yield to call when call data is entered. It helps investors review a conservative return estimate before purchasing a callable municipal bond.
Actual bond settlements include accrued interest, so dirty price better reflects what the buyer pays. Using dirty price makes YTM and YTC estimates more practical than solving from clean price alone.
No. Taxable-equivalent yield is a comparison metric, not a recommendation. Credit quality, call features, liquidity, duration risk, and personal tax rules still matter before making any investment decision.
Yes, for general bond math. However, the tax-exemption options and taxable-equivalent output are designed for municipal analysis, so corporate or Treasury comparisons should be interpreted with appropriate tax assumptions.
They are model-based estimates using entered cash flows and solved yield. They are useful for screening and scenario testing, but broker systems may differ because of settlement conventions, call schedules, or day-count methods.
Market price, coupon rate, maturity, payment frequency, tax rates, and accurate coupon timing are the most important. If the bond is callable, adding call price and years to call improves risk and yield analysis.
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.