.treasury-bond-calculator-container {
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margin: 20px auto;
padding: 25px;
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border-radius: 10px;
background-color: #fdfdfd;
box-shadow: 0 4px 12px rgba(0, 0, 0, 0.05);
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outline: none;
box-shadow: 0 0 0 3px rgba(0, 123, 255, 0.25);
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margin-top: 25px;
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background-color: #218838;
transform: translateY(-2px);
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margin-top: 15px;
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function calculateTreasuryBond() {
var faceValue = parseFloat(document.getElementById('faceValue').value);
var couponRate = parseFloat(document.getElementById('couponRate').value);
var marketPrice = parseFloat(document.getElementById('marketPrice').value);
var yearsToMaturity = parseFloat(document.getElementById('yearsToMaturity').value);
var errorMessageDiv = document.getElementById('errorMessage');
var bondResultsDiv = document.getElementById('bondResults');
errorMessageDiv.style.display = 'none';
bondResultsDiv.style.display = 'none';
if (isNaN(faceValue) || isNaN(couponRate) || isNaN(marketPrice) || isNaN(yearsToMaturity) ||
faceValue <= 0 || couponRate < 0 || marketPrice <= 0 || yearsToMaturity 0) {
yieldToMaturity = (annualCouponPayment + (faceValue – marketPrice) / yearsToMaturity) / ((faceValue + marketPrice) / 2) * 100;
} else {
// If yearsToMaturity is 0, YTM is effectively the current yield if held to maturity (which is now)
yieldToMaturity = currentYield;
}
// Display results
document.getElementById('annualCouponPayment').textContent = '$' + annualCouponPayment.toFixed(2);
document.getElementById('semiAnnualCouponPayment').textContent = '$' + semiAnnualCouponPayment.toFixed(2);
document.getElementById('currentYield').textContent = currentYield.toFixed(2) + '%';
document.getElementById('yieldToMaturity').textContent = yieldToMaturity.toFixed(2) + '%';
bondResultsDiv.style.display = 'block';
}
United States Treasury Bond Calculator
Annual Coupon Payment:
Semi-Annual Coupon Payment:
Current Yield:
Approximate Yield to Maturity (YTM):
Understanding U.S. Treasury Bonds
United States Treasury Bonds (T-bonds) are long-term debt securities issued by the U.S. Department of the Treasury to finance government spending. They are considered one of the safest investments globally because they are backed by the full faith and credit of the U.S. government. T-bonds typically have maturities of 20 or 30 years and pay interest semi-annually until maturity, at which point the face value of the bond is returned to the investor.
How This Calculator Works
This calculator helps you understand key metrics for a U.S. Treasury bond based on its current characteristics:
- Bond Face Value: This is the principal amount that the bondholder will receive at maturity. T-bonds are typically issued in denominations of $1,000.
- Annual Coupon Rate: This is the fixed interest rate the bond pays annually, expressed as a percentage of its face value.
- Current Market Price: This is the price at which the bond is currently trading in the secondary market. It can be above (premium), below (discount), or equal to its face value.
- Years Remaining to Maturity: This is the number of years left until the bond matures and the face value is repaid.
Key Metrics Calculated:
- Annual Coupon Payment: The total interest paid by the bond each year.
- Semi-Annual Coupon Payment: The amount of interest paid every six months.
- Current Yield: This measures the annual income (coupon payment) relative to the bond's current market price. It's a simple measure of return if you buy the bond today and hold it for one year.
- Approximate Yield to Maturity (YTM): YTM is the total return an investor can expect to receive if they hold the bond until it matures. It takes into account the bond's current market price, face value, coupon interest payments, and time to maturity. This calculator uses a common approximation formula for YTM, which provides a good estimate for most practical purposes.
Example Scenario:
Let's say you are considering a U.S. Treasury bond with the following characteristics:
- Face Value: $1,000
- Annual Coupon Rate: 3.5%
- Current Market Price: $980
- Years Remaining to Maturity: 10 years
Using these inputs, the calculator would provide:
- Annual Coupon Payment: $35.00 ($1,000 * 0.035)
- Semi-Annual Coupon Payment: $17.50 ($35.00 / 2)
- Current Yield: Approximately 3.57% (($35 / $980) * 100)
- Approximate Yield to Maturity (YTM): Approximately 3.74% (reflecting the gain from buying at a discount and receiving face value at maturity, in addition to coupon payments)
This calculator is a useful tool for investors to quickly assess the potential returns and income generated by U.S. Treasury bonds.