This calculator helps you determine the rate of return on a bond investment. Understanding the rate of return is crucial for assessing the profitability of your bond holdings and comparing them with other investment opportunities.
function calculateBondRateOfReturn() {
var purchasePrice = parseFloat(document.getElementById("purchasePrice").value);
var faceValue = parseFloat(document.getElementById("faceValue").value);
var annualCouponPayment = parseFloat(document.getElementById("annualCouponPayment").value);
var yearsToMaturity = parseFloat(document.getElementById("yearsToMaturity").value);
var currentMarketPrice = parseFloat(document.getElementById("currentMarketPrice").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = ""; // Clear previous results
if (isNaN(purchasePrice) || purchasePrice <= 0 ||
isNaN(faceValue) || faceValue <= 0 ||
isNaN(annualCouponPayment) || annualCouponPayment < 0 || // Coupon can be 0
isNaN(yearsToMaturity) || yearsToMaturity 0) {
// For YTM, we consider the current market price if provided, otherwise face value at maturity
var priceAtMaturity = isNaN(currentMarketPrice) || currentMarketPrice <= 0 ? faceValue : currentMarketPrice;
approximatedYTM = ((annualCouponPayment + (faceValue – priceAtMaturity) / yearsToMaturity) / ((priceAtMaturity + purchasePrice) / 2)) * 100;
} else {
// If no current market price, we approximate YTM based on face value at maturity
approximatedYTM = ((annualCouponPayment + (faceValue – purchasePrice) / yearsToMaturity) / ((faceValue + purchasePrice) / 2)) * 100;
}
resultDiv.innerHTML += "