I Bond Calculators.

I Bond Calculators.

I Bond Calculator

The I Bond Calculator is a complex equation that serves as a shortcut to calculating the maximum length of time your principal will last until it recurs to the issuing institution. For example, if you get an I Bond at age 22 and the calculated life span is 18. 8 years, you would have to pay the I Bond back to the issuing institution after the the 18. 8-year span is up.


Find out what your paper savings bonds are worth with our online Calculator. The Calculator will price paper bonds of these series: EE, E, I, and savings notes. Other features include current interest rate, next accrual date, final maturity date, and year-to-date interest earned. Historical and future information also are available. You can save your inventory so you can update your paper bond values quickly and easily. All you need to do is use your browser's built-in saving function. Click "View/Print/Save List" and then when the list appears, click "File" and "Save As" and name your inventory. Make sure that you save your file as an "HTML Only" file and that you know where on your computer's hard drive it will be saved. Then click "Save." If you'd like more detail, check out our Instructions for Saving Your Inventory Page. Note: Follow these same steps when re-saving an inventory you've updated. Like any investment, it depends on one's individual circumstances, goals, and risk tolerance. Low-yield bonds may be better for investors who want a virtually risk-free asset, or one who is hedging a mixed portfolio by keeping a portion of it in a low-risk asset. High-yield bonds may instead be better-suited for investors who are willing to accept a degree of risk in return for a higher return. The risk is that the company or government issuing the bond will default on its debts. Diversification can help lower portfolio risk while boosting expected returns.

The yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until it matures. Yield to maturity is considered a long-term bond yield but is expressed as an annual rate. YTM is usually quoted as a bond equivalent yield (BEY), which makes bonds with coupon payment periods less than a year easy to compare. The annual percentage yield (APY) is the real rate of return earned on a savings deposit or investment taking into account the effect of compounding interest. The annual percentage rate (APR) includes any fees or additional costs associated with the transaction, but it does not take into account the compounding of interest within a specific year. An investor in a callable bond also wants to estimate the yield to call (YTC), or the total return that will be received if the bond purchased is held only until its call date instead of full maturity. In addition to evaluating the expected cash flows from individual bonds, yields are used for more sophisticated analyses. Traders may buy and sell bonds of different maturities to take advantage of the yield curve, which plots the interest rates of bonds having equal credit quality but differing maturity dates. The slope of the yield curve gives an idea of future interest rate changes and economic activity. They may also look to the difference in interest rates between different categories of bonds, holding some characteristics constant. A yield spread is the difference between yields on differing debt instruments of varying maturities, credit ratings, issuer, or risk level, calculated by deducting the yield of one instrument from the other -- for example the spread between AAA corporate bonds and U.S. Treasuries. This difference is most often expressed in basis points (bps) or percentage points. (Source: www.investopedia.com)



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