Bond Amortization Calculator

This free bond premium or discount amortization calculator with can be used for any bond up to a maximum term of 200 interest payment periods.

The calculator will calculate the straight line method bond amortization, and will also produce an effective interest method amortization schedule setting out the premium or discount amortization for each interest payment period.

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How to Calculate a Zero Coupon Bond Price

The zero coupon bond price is the present value of all future cash flows expected from the bond. For a zero coupon bond, there are no periodic interest payments, and the only cash flow is the face value of the bond received by the investor at the maturity date. In order to receive a return on their investment a zero coupon bond must be issued to investors at a deep discount.

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How to Calculate a Bond Price

The bond price is the net present value of all future cash flows expected from the bond. The bond cash flow includes the receipt of the principal amount at the maturity date, and the receipt of periodic interest payments throughout the term. Time value of money calculations can be used to determine the bond present value.

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Bonds Payable

Bonds payable are long term liabilities and represent amounts owed by a business to a third party. A business will issue bonds payable if it wants to obtain funding from long term investors by way of loans.

The bond payable will stipulate the interest rate and the term to be used, known as the maturity date. At the maturity date the investor will receive repayment of the principal amount invested and interest. Bonds are transferable, and an investor can sell their bond before the maturity date.

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