Input parameters in the bond calculator
In the open bond calculator you will find the following input parameters with which you can map and calculate your scenario:
| Element | Description |
|---|---|
Bond type | Type of bond. If necessary, select a different bond type from the selection list: Coupon bond, zero bond, floater, Bundesschatz, convertible bond... If you have stored an interest history for the bond, this input field is deactivated. |
Runtime | Enter the term of the bond here. Please note that the correct specification of the term is very important for the calculation of the key figures. If you have stored an interest history for the bond, this input field is deactivated. |
Repayment rate | The redemption rate is displayed here, usually 100. |
Interest interval | Click on the arrow on the right to change the interest interval. If you have stored an interest history for the bond, this input field is deactivated. |
Interest rate | The interest rate of the bond must be entered as a real number, e.g. 6.5 for 6.5%. Entering 0.065 leads to incorrect results. Click on the "Edit interest history" icon to the right to open a dialog box for manually entering a temporary interest history. This allows you to simulate the effects of a variable interest rate on floaters, for example. The following data is required to create an interest history: First trading day (issue date), term and interest rate interval. If not available, January 1 is used as the interest date. It is not possible to enter an interest history for zero bonds and bonds for which no type has been defined (type "n/a"). Creating or manipulating an interest rate history in the bond calculator only applies to the scenario constructed in the calculator. The master data of the bond will not be changed. To actually change these, switch to the "Bond master data" dialog box if necessary. For manual data entry, see also the chapter Histories. |
Interest payment date | Date of interest payment. If you have stored an interest history for the bond, this input field is deactivated. |
First trading day | Issue date of the bond. If you have stored an interest history for the bond, this input field is deactivated. |
Dates in history are payment dates | This checkbox influences the behavior of the history during the calculation. If the checkbox is activated, the entries in the history are interpreted as single payment dates. If the checkbox is deactivated, the data records in the history are only interpreted as interest rate changes and not as payments. The payment dates are then calculated according to the master data. |
Evaluation date | Date on which the calculation is to be made. The default setting is the current date. |
Tax rate | Enter the tax rate here. The default setting is the withholding tax rate selected in the global settings. |
Accrued interest | Here you can see the accrued interest since the last interest payment date, based on the nominal value of 100. |
Interest days | Select the Interest day method for the calculation from this selection list. |
Market interest rate level | Use the arrow icons to indicate the change in the market interest rate level. |
Yield calculation | Select the yield calculation method from this selection list. |
Interest rate change | Use the arrow icons to indicate the change in the interest rate level. |
Course | Enter the price on the basis of which the return is to be calculated. Alternatively, you can also change the calculation mode and have the price calculated. |
Calculation mode | Select the mode here by activating the desired option: "Yield" or "price at yield". The yield or the fair price of the bond is then calculated from the available information. |
Calculate | If you select this button, the Infront Portfolio Manager calculates the yield or price of the bond from the available data in the selected calculation mode. |
In the event of changes in the "Price", "Market interest rate level" and "Interest rate change" fields, the dependent fields are automatically recalculated. If changes are made in the other fields, e.g. "Interest rate" or "Term", you must restart the calculation by clicking the "Calculate" button.