What is the binding calculator?

The bond calculator is a tool that helps to determine the price or return of the binding. A well -known coupon and over time can be used to determine the missing information. Although these calculations can certainly be done manually, the bond calculator helps to get results faster and easier. These debt certificates may come in various forms, including eternity, zero coupon and municipal bonds. A common bond with a fixed rate basically works like this: a creditor or a creditor buys a debt-head of the debtor or the debtor. The debtor or the debtor pays the principal interest by means of "coupon" payments at regular intervals and then the principal is repaid to the pre-established date of due date.Atu of the Bond. However, the market price bond market price usually differs from this value, depending on the debtor's ability to make promised voucher payments, interest changes and other macroeconomic shocks. Thus, the yield is the difference between the main and this total price.

When the price of the bond equals its nominal value - that is, nothing has changed since the bond purchase and the debtor has met all its obligations - the yield is simply the coupon rate. In this case, the creditor absorbed the yield or profit equal to the bond coupon. However, when the price is above or below the nominal value of the bond, the yield changes. The price and yield are in fact indirectly connected. This means if the market price increases, then the yield will decrease and vice versa.

The binding calculator helps to determine a lot of information depending on the binding coaches are known. One may detect, such as the current return, a return for maturity or price. In addition, the bond calculator may allow you to adjust the price or yield along the sliding scale to see all the corresponding prices and revenues for a particular bond in question. These binding calculators exist in different places on the web.