Best Answer

Know the bond's face value, then, find the bond's coupon interest rate at the time the bond was issued or bought, then, multiply the bond's face value by the coupon interest rate it had when issued, then, know when your bond's interest payments are made, finally, multiply the product of the bond's face value and interest rate by the number of months in between payments.

Q: How are interest on a bond calculated?

Write your answer...

Submit

Still have questions?

Continue Learning about Math & Arithmetic

it is calucated on the face value of the bond

Penalty interest is calculated from the required and projected balance

Accumulated or compound interest is calculated by adding interest to both the principal and any interest accumulated up to the point of the calculation.

simple interest

That depends on exactly how the interest is calculated. If its calculated once per year the answer would be: 3000 * 16 = 48.000 / 100 = 480,- If your interest is calculated per month or per 3 months the interest is going to be slightly more.

Related questions

The interest earned on government bonds is calculated on the face value of the bond plus the interest that has been earned on the bond.

it is calucated on the face value of the bond

it is calucated on the face value of the bond

It is calculated as set out in the contract to purchase the bond. Bonds can have different contracts.

it is calucated on the face value of the bond

Mortgage rates are calculated based on the 10-year Treasury bond. This mean that usually when bond rates go up so do interest rates and interest rates are part of what we pay when we pay our mortgage. Mortgage rates are also calculated based on how much of a loan we need to finance our home purchase. One will pay an interest rate on the loan amount.

When market interest rates exceed a bond's coupon rate, the bond will:

No, they are not calculated as "a".

Penalty interest is calculated from the required and projected balance

Apex- Coupon

Accumulated or compound interest is calculated by adding interest to both the principal and any interest accumulated up to the point of the calculation.

A coupon bearing bond is a bond with a flat yield curve. This is a non interest bearing bond. There really would be no sense in purchasing a bond that does not gather any interest.