1. What is Bond Future Value?

The future value of a bond at maturity is the sum of its par value and the last coupon payment. This represents the total amount the bondholder will receive when the bond reaches its maturity date.

2. How Does the Calculator Work?

The calculator uses the simple bond future value formula:

Where:

• \( FV \) — Future Value of the bond at maturity
• \( Par \) — Par value (face value) of the bond
• \( Last\ Coupon \) — Final coupon payment received at maturity

Explanation: At maturity, bondholders receive both the principal (par value) and the final interest payment.

3. Importance of Bond Valuation

Details: Understanding a bond's future value helps investors assess potential returns and compare different fixed-income investment options.

4. Using the Calculator

Tips: Enter the bond's par value and last coupon payment in USD. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is par value?
A: Par value is the face value of the bond, the amount that will be repaid at maturity.

Q2: Are all coupon payments the same?
A: For fixed-rate bonds, yes. The last coupon is typically the same as all previous coupons unless specified otherwise.

Q3: What about zero-coupon bonds?
A: For zero-coupon bonds, the last coupon would be 0, and the future value equals the par value.

Q4: Does this account for accrued interest?
A: This simple calculation assumes the bond is held to maturity. For sales before maturity, additional calculations would be needed.

Q5: How does this differ from bond price?
A: Bond price is the current market value, while future value is what you'll receive at maturity.