Free Net Present and Future Value Tool | Annuity Present Value Calculator

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    Present Value
    Amount to be received in the future $
    Annual Interest Rate %
    Number of times interest is compounded
    Number of Years
    Present Value Factor
    Present Value Amount $
    Future Value
    Amount now $
    Annual Interest Rate %
    Number of times interest is compounded
    Number of Years
    Future Value Factor
    Future Amount $
    Present Amount of Ordinary Annuity
    Payment Amount $
    Interest Rate %
    Number of Payments
    Present Value Factor
    Present Value of Annuity $
    Future Value of an Ordinary Annuity
    Payment Amount $
    Interest Rate %
    Number of Payments
    Future Value Factor
    Future Value of Annuity $

    Bond Value Calculator

    Bond Present Value Calculator

      

    The purpose of this calculator is to provide calculations and details for bond valuation problems.
    It is assumed that all bonds pay interest semi-annually.

    Instructions: Fill in the spaces that correspond to the number of years, maturity, coupon rate, and yield-to-maturity,
    followed by clicking on the "Compute" button.
    The calculator will provide the rest.
    The coupon rate and yield-to-maturity can be entered as whole numbers or in decimals.

    Bond Inputs
    Number of years to maturity
    Coupon rate
    Face value
    Yield to maturity
    BOND VALUE
    Calculator Details
    Number of cash flows N
    Amount of cash flow PMT
    Yield per six months i
    Future value FV
    Solve for PV There are five variables in a bond valuation problem.
    Using a financial calculator requires that you type in the four known elements
    (N, PMT, I, and FV)
    and solve for the one unknown, the present value (PV).
    Computational Details
    Present value of interest
    Periodic cash flow
    Present value annuity factor
    Present value of face value
    Face value
    Discount factor
    The value of a bond today is the sum of the present value of the interest payments (valued as an ordinary annuity)
    and the present value of the face value (discounted as a lump-sum):
    PV = [ S CFt/(1 + i)t] + [FV / (1 + i)t]

    Conclusion

    Further business analysis samples of Interest Rates and Bond Prices

    Future Value of Annuity

    FV = C + C( 1 + r ) + C ( 1 + r )2 + ... + C( 1 + r )n - 1 = C [((1+r)n-1)/r]
    where C is the cashflow
    and n is the number of cashflows.

    Net Present Value of Annuity

    NPV = C / (1 + r) + C / (1 + r)2 + ... + C / (1 + r)n = C { 1 - [1/(1+r)n] / r }
    where C is the cashflow
    and n is the number of cashflows.

    Continuous Compounding

    From compounding m times per year to continuous compounding:
    rc = m * ln( 1 + rm / m )
    From continuous compounding to compounding m times per year:
    rm = m( erc / m - 1 )

    Example

    Interest Rate8% per annuum
    CompoundingQuarterly(4)
    rc = 4 * ln ( 1 + 0.08 / 4 ) = 0.0792 = 7.92%

    Next, consider an interest rate that is quoted 12% per annum with continuous compounding.
    The equivalent rate with annual compounding is
    r1 = 1 (e0.12/1 - 1 ) 0.1275 = 12.75%

    Compounding Frequency

    From compounding m times per year to annual compounding:
    r = (1 + rm / m) m - 1
    From annual compounding to compounding m times per annum:
    rm = m * [ (1 + r)(1/m) - 1 ]

    Example

    Interest Rate8% per annuum
    CompoundingQuarterly(4)
    The equivalent rate with annual compounding is
    r = ( 1 + 0.08 / 4 )4 - 1 = 0.0824 = 8.24%

    From m to n compoundings per annum:
    The formula below can be used to transform a rate rn with n compoundings per year
    to a rate rm with m compoundings per year
    rn = n * [ ( 1 + rm / m )m/n - 1 ]

    Example

    Consider a rate with compounding frequency four times per year.
    If the rate is 7% then the equivalent rate with semiannual compounding:
    r2 = 2 * [ ( 1 + 0.07 / 4 )4/2 - 1 ] = 0.0706
    The equivalent rate with semiannual compounding is 7.06%