Template:Bond Calculator Answer Key

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 {{{Currency}}}{{{Bond Price}}}, since the face value (initial value of the bond when it is issued) and purchase value (price when he would buy the bond) will be the same.
Enter today’s date as the Issue Date
1. Note: The exact date the bond is issued or comes to maturity are not necessary, as long as the time difference between the Par, Face and Maturity values are relevant.
In the Coupon Rate field enter 10%
Enter the Maturity Value as {{{Currency}}}{{{Maturity Value 1}}}, and the Maturity Date as 15 years from today’s date.
Enter the current market price of {{{Currency}}}{{{Bond Price}}} in the Purchase Value field
In the Purchase date field enter today’s date again: the date the client would purchase the bond (in this case the same as the Issue Date).
Click on the Yield button next to Yield to Maturity.

The result should be {{{CALC Yield to Maturity}}}%

Select Bond Calculator from the Calculators drop-down menu on the Home page.
Click on the Radio button to indicate Current Rates
The Compound Frequency can be set to annual.
Select the annual option under the drop-down list for Payment Frequency
In the Par Value field enter {{{Currency}}}{{{Original Price}}}.
Enter the Issue Date as two years ago.
In the Coupon Rate field enter 8%
Enter the Maturity Value as {{{Currency}}}{{{Maturity Value 2}}}, and the Maturity Date as 10 years from the issue date.
Leave the Purchase Value field blank for now since this is what we are calculating for.
In the Purchase date field enter today’s date.
Enter the Yield as 8.5%.
Click on the Purchase button next to the Purchase Date field.

The result should be {{{Currency}}}{{{CALC Purchase Value}}}