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Bond Duration Calculator

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Tina Said:

How many years are reduced from a 30yr mortgage if 3 extra payments are made each year?

We Answered:

Assume a 30 year mortgage of $200,000 at a fixed rate of 6.5% for the loan duration. The monthly payment on such a mortgage would be $1252.80. If you multiply $1252.80 (three payments) and divide that equally over 12 months, you will add $313.20 to each monthly payment, which will be applied to principal reduction. If you follow this plan without fail, your 30 year mortgage will be fully retired in 18 years.

There are a number of calculators online for making such a determination. I happen to have used the one at bankrate.com

Ben Said:

Finance Help?

We Answered:

d) All else being equal, a bond with larger coupons has shorter DURATION than a coupon with smaller coupons. Remember, you get more cash earlier, so duration is shorter.

5.23642%
(according to my calculator)
PV = -853.61
N = 5
I/Y = 9
FV = 1,000
Solve for PMT

Jane Said:

Help with investment homework?

We Answered:

You indicated that the number of years to maturity is given, and that's your answer. However you can calculate it by plugging in the known values into a financial calculator. Bonds pay interest semi annually, so your interest rate is half the coupon rate, the semi annual interest payment is half the coupon rate times the face value, typically $1,000, the future value is the face value, $1000. So you have future value, payment, interest rate and you solve for N, which will be double the term of the bond, because N is semi annual.

Mildred Said:

what is the best NPV, IRR etc business calculator?

We Answered:

FinFreedom Financial calculator provides 30 most commonly used financial functions some of which are not available on handheld calculators like TI BA II plus or HP

Here is what you can do with FinFreedom

Capital Budgeting
IRR, MIRR, NPV, Payback and Discounted Payback Period, Profitability Index

Present & Future Values of Annuities (Ordinary, Due and Growing Annuities)
FV, FVA, FVAD, FVGA, FVGAD, PV, PVA, PVAD, PVGA, PVGAD

Interest Rates
FVIF, FVIFA, FVIFAD, FVIFGA, FVIFGAD, PVIF, PVIFA, PVIFAD, PVIFGA, PVIFGAD

Bonds & Stocks
Bond price for perpetual and coupon bearing bonds, YTM & YTC on bonds
Stock price for preferred and common stock

Savings Account Compounding Interest

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You can also download Freeware FinXL financial calculators that automate all 53 MS Excel financial functions to run as MS Windows desktop calculators

Here is the list of calculator functions

* ACCRINT
* ACCRINTM
* AMORDEGRC
* AMORLINC
* COUPDAYBS
* COUPDAYS
* COUPDAYSNC
* COUPNCD
* COUPNUM
* COUPPCD
* CUMIPMT
* CUMPRINC
* DB
* DDB
* DISC
* DOLLARDE
* DOLLARFR
* DURATION
* EFFECT
* FV
* FVSCHEDULE
* INTRATE
* IPMT
* IRR
* ISPMT
* MDURATION
* MIRR
* NOMINAL
* NPER
* NPV
* ODDFPRICE
* ODDFYIELD
* ODDLPRICE
* ODDLYIELD
* PMT
* PPMT
* PRICE
* PRICEDISC
* PRICEMAT
* PV
* RATE
* RECEIVED
* SLN
* SYD
* TBILLEQ
* TBILLPRICE
* TBILLYIELD
* VDB
* XIRR
* XNPV
* YIELD
* YIELDDISC
* YIELDMAT Your Ad Here

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