Planit:Bond Calculator Case Study

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Canada English

The bond calculator performs a simple calculation of the income return, capital gain return and the yield to maturity for bonds. Example Problem One: Determine the yield to maturity of the following Government Bond: Given: Face Value $1,000 Coupon Interest 9.75% Issue Date Last year-01-01 Term 12 years Current Market Price $1,021 Maturity Value $1,250 Yield to Maturity _______ Assumptions: Compounding period is semi-annual Solution Using the Bond Calculator: Select Bond Calculator from the Calculators drop-down menu on the Home page. Click on the Radio button to indicate Current Rates Select the Compound Frequency as semi-annual. Select the semi-annual option under the drop-down list for Payment Frequency In the Par Value field enter $1,000 (face value of bond). Enter the date for one year ago-01-01 as the Issue Date In the Coupon Rate field enter 9.75% (coupon interest) Enter the value of $1,250 in the Maturity Value field For the Maturity Date, enter the Issue Date plus 12 years. Enter the current market price of $1,021 in the Purchase Value field In the Purchase date field enter current year-01-01: the date the coupon was last valued. Click on the Yield button next to Yield to Maturity. The Yield to Maturity is 10.954%.

United States of America

The bond calculator performs a simple calculation of the income return, capital gain return and the yield to maturity for bonds. Example Problem One: Determine the yield to maturity of the following Government Bond: Given: Face Value $1,000 Coupon Interest 9.75% Issue Date Last year-01-01 Term 12 years Current Market Price $1,021 Maturity Value $1,250 Yield to Maturity _______ Assumptions: Compounding period is semi-annual Solution Using the Bond Calculator: Select Bond Calculator from the Calculators drop-down menu on the Home page. Click on the Radio button to indicate Current Rates Select the Compound Frequency as semi-annual. Select the semi-annual option under the drop-down list for Payment Frequency In the Par Value field enter $1,000 (face value of bond). Enter the date for one year ago-01-01 as the Issue Date In the Coupon Rate field enter 9.75% (coupon interest) Enter the value of $1,250 in the Maturity Value field For the Maturity Date, enter the Issue Date plus 12 years. Enter the current market price of $1,021 in the Purchase Value field In the Purchase date field enter current year-01-01: the date the coupon was last valued. Click on the Yield button next to Yield to Maturity. The Yield to Maturity is 10.954%.

Argentina

The bond calculator performs a simple calculation of the income return, capital gain return and the yield to maturity for bonds. Example Problem One: Determine the yield to maturity of the following Government Bond: Given: Face Value $3 850 Coupon Interest 9.75% Issue Date Last year-01-01 Term 12 years Current Market Price $3 900 Maturity Value $4 800 Yield to Maturity _______ Assumptions: Compounding period is semi-annual Solution Using the Bond Calculator: Select Bond Calculator from the Calculators drop-down menu on the Home page. Click on the Radio button to indicate Current Rates Select the Compound Frequency as semi-annual. Select the semi-annual option under the drop-down list for Payment Frequency In the Par Value field enter $3 850 (face value of bond). Enter the date for one year ago-01-01 as the Issue Date In the Coupon Rate field enter 9.75% (coupon interest) Enter the value of $4 800 in the Maturity Value field For the Maturity Date, enter the Issue Date plus 12 years. Enter the current market price of $3 900 in the Purchase Value field In the Purchase date field enter current year-01-01: the date the coupon was last valued. Click on the Yield button next to Yield to Maturity. The Yield to Maturity is 11.061%.

Brazil

The bond calculator performs a simple calculation of the income return, capital gain return and the yield to maturity for bonds. Example Problem One: Determine the yield to maturity of the following Government Bond: Given: Face Value R$71 950 Coupon Interest 9.75% Issue Date Last year-01-01 Term 12 years Current Market Price R$73 450 Maturity Value R$89 900 Yield to Maturity _______ Assumptions: Compounding period is semi-annual Solution Using the Bond Calculator: Select Bond Calculator from the Calculators drop-down menu on the Home page. Click on the Radio button to indicate Current Rates Select the Compound Frequency as semi-annual. Select the semi-annual option under the drop-down list for Payment Frequency In the Par Value field enter R$71 950 (face value of bond). Enter the date for one year ago-01-01 as the Issue Date In the Coupon Rate field enter 9.75% (coupon interest) Enter the value of R$89 900 in the Maturity Value field For the Maturity Date, enter the Issue Date plus 12 years. Enter the current market price of R$73 450 in the Purchase Value field In the Purchase date field enter current year-01-01: the date the coupon was last valued. Click on the Yield button next to Yield to Maturity. The Yield to Maturity is 10.954%.

United Kingdom

The bond calculator performs a simple calculation of the income return, capital gain return and the yield to maturity for bonds. Example Problem One: Determine the yield to maturity of the following Government Bond: Given: Face Value £600 Coupon Interest 9.75% Issue Date Last year-01-01 Term 12 years Current Market Price £650 Maturity Value £750 Yield to Maturity _______ Assumptions: Compounding period is semi-annual Solution Using the Bond Calculator: Select Bond Calculator from the Calculators drop-down menu on the Home page. Click on the Radio button to indicate Current Rates Select the Compound Frequency as semi-annual. Select the semi-annual option under the drop-down list for Payment Frequency In the Par Value field enter £600 (face value of bond). Enter the date for one year ago-01-01 as the Issue Date In the Coupon Rate field enter 9.75% (coupon interest) Enter the value of £750 in the Maturity Value field For the Maturity Date, enter the Issue Date plus 12 years. Enter the current market price of £650 in the Purchase Value field In the Purchase date field enter current year-01-01: the date the coupon was last valued. Click on the Yield button next to Yield to Maturity. The Yield to Maturity is 10.048%.

Russia

The bond calculator performs a simple calculation of the income return, capital gain return and the yield to maturity for bonds. Example Problem One: Determine the yield to maturity of the following Government Bond: Given: Face Value руб.30 000 Coupon Interest 9.75% Issue Date Last year-01-01 Term 12 years Current Market Price руб.30 650 Maturity Value руб.37 500 Yield to Maturity _______ Assumptions: Compounding period is semi-annual Solution Using the Bond Calculator: Select Bond Calculator from the Calculators drop-down menu on the Home page. Click on the Radio button to indicate Current Rates Select the Compound Frequency as semi-annual. Select the semi-annual option under the drop-down list for Payment Frequency In the Par Value field enter руб.30 000 (face value of bond). Enter the date for one year ago-01-01 as the Issue Date In the Coupon Rate field enter 9.75% (coupon interest) Enter the value of руб.37 500 in the Maturity Value field For the Maturity Date, enter the Issue Date plus 12 years. Enter the current market price of руб.30 650 in the Purchase Value field In the Purchase date field enter current year-01-01: the date the coupon was last valued. Click on the Yield button next to Yield to Maturity. The Yield to Maturity is 10.944%.

China

The bond calculator performs a simple calculation of the income return, capital gain return and the yield to maturity for bonds. Example Problem One: Determine the yield to maturity of the following Government Bond: Given: Face Value ¥6 500 Coupon Interest 9.75% Issue Date Last year-01-01 Term 12 years Current Market Price ¥6 600 Maturity Value ¥8 100 Yield to Maturity _______ Assumptions: Compounding period is semi-annual Solution Using the Bond Calculator: Select Bond Calculator from the Calculators drop-down menu on the Home page. Click on the Radio button to indicate Current Rates Select the Compound Frequency as semi-annual. Select the semi-annual option under the drop-down list for Payment Frequency In the Par Value field enter ¥6 500 (face value of bond). Enter the date for one year ago-01-01 as the Issue Date In the Coupon Rate field enter 9.75% (coupon interest) Enter the value of ¥8 100 in the Maturity Value field For the Maturity Date, enter the Issue Date plus 12 years. Enter the current market price of ¥6 600 in the Purchase Value field In the Purchase date field enter current year-01-01: the date the coupon was last valued. Click on the Yield button next to Yield to Maturity. The Yield to Maturity is 11.021%.

Malaysia

The bond calculator performs a simple calculation of the income return, capital gain return and the yield to maturity for bonds. Example Problem One: Determine the yield to maturity of the following Government Bond: Given: Face Value RM3 000 Coupon Interest 9.75% Issue Date Last year-01-01 Term 12 years Current Market Price RM3 100 Maturity Value RM3 800 Yield to Maturity _______ Assumptions: Compounding period is semi-annual Solution Using the Bond Calculator: Select Bond Calculator from the Calculators drop-down menu on the Home page. Click on the Radio button to indicate Current Rates Select the Compound Frequency as semi-annual. Select the semi-annual option under the drop-down list for Payment Frequency In the Par Value field enter RM3 000 (face value of bond). Enter the date for one year ago-01-01 as the Issue Date In the Coupon Rate field enter 9.75% (coupon interest) Enter the value of RM3 800 in the Maturity Value field For the Maturity Date, enter the Issue Date plus 12 years. Enter the current market price of RM3 100 in the Purchase Value field In the Purchase date field enter current year-01-01: the date the coupon was last valued. Click on the Yield button next to Yield to Maturity. The Yield to Maturity is 10.849%.

Singapore

The bond calculator performs a simple calculation of the income return, capital gain return and the yield to maturity for bonds. Example Problem One: Determine the yield to maturity of the following Government Bond: Given: Face Value S$1 300 Coupon Interest 9.75% Issue Date Last year-01-01 Term 12 years Current Market Price S$1 350 Maturity Value S$1 600 Yield to Maturity _______ Assumptions: Compounding period is semi-annual Solution Using the Bond Calculator: Select Bond Calculator from the Calculators drop-down menu on the Home page. Click on the Radio button to indicate Current Rates Select the Compound Frequency as semi-annual. Select the semi-annual option under the drop-down list for Payment Frequency In the Par Value field enter S$1 300 (face value of bond). Enter the date for one year ago-01-01 as the Issue Date In the Coupon Rate field enter 9.75% (coupon interest) Enter the value of S$1 600 in the Maturity Value field For the Maturity Date, enter the Issue Date plus 12 years. Enter the current market price of S$1 350 in the Purchase Value field In the Purchase date field enter current year-01-01: the date the coupon was last valued. Click on the Yield button next to Yield to Maturity. The Yield to Maturity is 10.599%.

Hong Kong

The bond calculator performs a simple calculation of the income return, capital gain return and the yield to maturity for bonds. Example Problem One: Determine the yield to maturity of the following Government Bond: Given: Face Value HK$7 500 Coupon Interest 9.75% Issue Date Last year-01-01 Term 12 years Current Market Price HK$7 650 Maturity Value HK$9 400 Yield to Maturity _______ Assumptions: Compounding period is semi-annual Solution Using the Bond Calculator: Select Bond Calculator from the Calculators drop-down menu on the Home page. Click on the Radio button to indicate Current Rates Select the Compound Frequency as semi-annual. Select the semi-annual option under the drop-down list for Payment Frequency In the Par Value field enter HK$7 500 (face value of bond). Enter the date for one year ago-01-01 as the Issue Date In the Coupon Rate field enter 9.75% (coupon interest) Enter the value of HK$9 400 in the Maturity Value field For the Maturity Date, enter the Issue Date plus 12 years. Enter the current market price of HK$7 650 in the Purchase Value field In the Purchase date field enter current year-01-01: the date the coupon was last valued. Click on the Yield button next to Yield to Maturity. The Yield to Maturity is 10.984%.

India

The bond calculator performs a simple calculation of the income return, capital gain return and the yield to maturity for bonds. Example Problem One: Determine the yield to maturity of the following Government Bond: Given: Face Value 44 100 Coupon Interest 9.75% Issue Date Last year-01-01 Term 12 years Current Market Price 45 050 Maturity Value 55 150 Yield to Maturity _______ Assumptions: Compounding period is semi-annual Solution Using the Bond Calculator: Select Bond Calculator from the Calculators drop-down menu on the Home page. Click on the Radio button to indicate Current Rates Select the Compound Frequency as semi-annual. Select the semi-annual option under the drop-down list for Payment Frequency In the Par Value field enter 44 100 (face value of bond). Enter the date for one year ago-01-01 as the Issue Date In the Coupon Rate field enter 9.75% (coupon interest) Enter the value of 55 150 in the Maturity Value field For the Maturity Date, enter the Issue Date plus 12 years. Enter the current market price of 45 050 in the Purchase Value field In the Purchase date field enter current year-01-01: the date the coupon was last valued. Click on the Yield button next to Yield to Maturity. The Yield to Maturity is 10.948%.

Caribbean

Jamaica The bond calculator performs a simple calculation of the income return, capital gain return and the yield to maturity for bonds. Example Problem One: Determine the yield to maturity of the following Government Bond: Given: Face Value J$82 500 Coupon Interest 9.75% Issue Date Last year-01-01 Term 12 years Current Market Price J$84 250 Maturity Value J$103 150 Yield to Maturity _______ Assumptions: Compounding period is semi-annual Solution Using the Bond Calculator: Select Bond Calculator from the Calculators drop-down menu on the Home page. Click on the Radio button to indicate Current Rates Select the Compound Frequency as semi-annual. Select the semi-annual option under the drop-down list for Payment Frequency In the Par Value field enter J$82 500 (face value of bond). Enter the date for one year ago-01-01 as the Issue Date In the Coupon Rate field enter 9.75% (coupon interest) Enter the value of J$103 150 in the Maturity Value field For the Maturity Date, enter the Issue Date plus 12 years. Enter the current market price of J$84 250 in the Purchase Value field In the Purchase date field enter current year-01-01: the date the coupon was last valued. Click on the Yield button next to Yield to Maturity. The Yield to Maturity is 10.952%. Trinidad and Tobago The bond calculator performs a simple calculation of the income return, capital gain return and the yield to maturity for bonds. Example Problem One: Determine the yield to maturity of the following Government Bond: Given: Face Value TT$6 100 Coupon Interest 9.75% Issue Date Last year-01-01 Term 12 years Current Market Price TT$6 250 Maturity Value TT$7 650 Yield to Maturity _______ Assumptions: Compounding period is semi-annual Solution Using the Bond Calculator: Select Bond Calculator from the Calculators drop-down menu on the Home page. Click on the Radio button to indicate Current Rates Select the Compound Frequency as semi-annual. Select the semi-annual option under the drop-down list for Payment Frequency In the Par Value field enter TT$6 100 (face value of bond). Enter the date for one year ago-01-01 as the Issue Date In the Coupon Rate field enter 9.75% (coupon interest) Enter the value of TT$7 650 in the Maturity Value field For the Maturity Date, enter the Issue Date plus 12 years. Enter the current market price of TT$6 250 in the Purchase Value field In the Purchase date field enter current year-01-01: the date the coupon was last valued. Click on the Yield button next to Yield to Maturity. The Yield to Maturity is 10.919%. Barbados The bond calculator performs a simple calculation of the income return, capital gain return and the yield to maturity for bonds. Example Problem One: Determine the yield to maturity of the following Government Bond: Given: Face Value Bds$1 950 Coupon Interest 9.75% Issue Date Last year-01-01 Term 12 years Current Market Price Bds$2 000 Maturity Value Bds$2 400 Yield to Maturity _______ Assumptions: Compounding period is semi-annual Solution Using the Bond Calculator: Select Bond Calculator from the Calculators drop-down menu on the Home page. Click on the Radio button to indicate Current Rates Select the Compound Frequency as semi-annual. Select the semi-annual option under the drop-down list for Payment Frequency In the Par Value field enter Bds$1 950 (face value of bond). Enter the date for one year ago-01-01 as the Issue Date In the Coupon Rate field enter 9.75% (coupon interest) Enter the value of Bds$2 400 in the Maturity Value field For the Maturity Date, enter the Issue Date plus 12 years. Enter the current market price of Bds$2 000 in the Purchase Value field In the Purchase date field enter current year-01-01: the date the coupon was last valued. Click on the Yield button next to Yield to Maturity. The Yield to Maturity is 10.79%. Bermuda The bond calculator performs a simple calculation of the income return, capital gain return and the yield to maturity for bonds. Example Problem One: Determine the yield to maturity of the following Government Bond: Given: Face Value BD$950 Coupon Interest 9.75% Issue Date Last year-01-01 Term 12 years Current Market Price BD$1 000 Maturity Value BD$1 200 Yield to Maturity _______ Assumptions: Compounding period is semi-annual Solution Using the Bond Calculator: Select Bond Calculator from the Calculators drop-down menu on the Home page. Click on the Radio button to indicate Current Rates Select the Compound Frequency as semi-annual. Select the semi-annual option under the drop-down list for Payment Frequency In the Par Value field enter BD$950 (face value of bond). Enter the date for one year ago-01-01 as the Issue Date In the Coupon Rate field enter 9.75% (coupon interest) Enter the value of BD$1 200 in the Maturity Value field For the Maturity Date, enter the Issue Date plus 12 years. Enter the current market price of BD$1 000 in the Purchase Value field In the Purchase date field enter current year-01-01: the date the coupon was last valued. Click on the Yield button next to Yield to Maturity. The Yield to Maturity is 10.549%. Bahamas The bond calculator performs a simple calculation of the income return, capital gain return and the yield to maturity for bonds. Example Problem One: Determine the yield to maturity of the following Government Bond: Given: Face Value B$950 Coupon Interest 9.75% Issue Date Last year-01-01 Term 12 years Current Market Price B$1 000 Maturity Value B$1 200 Yield to Maturity _______ Assumptions: Compounding period is semi-annual Solution Using the Bond Calculator: Select Bond Calculator from the Calculators drop-down menu on the Home page. Click on the Radio button to indicate Current Rates Select the Compound Frequency as semi-annual. Select the semi-annual option under the drop-down list for Payment Frequency In the Par Value field enter B$950 (face value of bond). Enter the date for one year ago-01-01 as the Issue Date In the Coupon Rate field enter 9.75% (coupon interest) Enter the value of B$1 200 in the Maturity Value field For the Maturity Date, enter the Issue Date plus 12 years. Enter the current market price of B$1 000 in the Purchase Value field In the Purchase date field enter current year-01-01: the date the coupon was last valued. Click on the Yield button next to Yield to Maturity. The Yield to Maturity is 10.549%. Puerto Rico The bond calculator performs a simple calculation of the income return, capital gain return and the yield to maturity for bonds. Example Problem One: Determine the yield to maturity of the following Government Bond: Given: Face Value $1,000 Coupon Interest 9.75% Issue Date Last year-01-01 Term 12 years Current Market Price $1,021 Maturity Value $1,250 Yield to Maturity _______ Assumptions: Compounding period is semi-annual Solution Using the Bond Calculator: Select Bond Calculator from the Calculators drop-down menu on the Home page. Click on the Radio button to indicate Current Rates Select the Compound Frequency as semi-annual. Select the semi-annual option under the drop-down list for Payment Frequency In the Par Value field enter $1,000 (face value of bond). Enter the date for one year ago-01-01 as the Issue Date In the Coupon Rate field enter 9.75% (coupon interest) Enter the value of $1,250 in the Maturity Value field For the Maturity Date, enter the Issue Date plus 12 years. Enter the current market price of $1,021 in the Purchase Value field In the Purchase date field enter current year-01-01: the date the coupon was last valued. Click on the Yield button next to Yield to Maturity. The Yield to Maturity is 10.954%.

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