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Step 1
Gather all of your information. You will need to know the municipal bonds rates (also known as the coupon rate), the price of the bond or the yield rate and the maturity date. This information is all used in the calculation process.
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Step 2
Go to the SmartMoney.com website. They have calculators for all types of things including one to calculate value of bonds. Locate the “Bond Calculator.” (If you don’t want to do the footwork, there is a link to it in the resources section in the footer of the article.)
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Step 3
Read all the information on the calculator in order to understand exactly what information it is providing. In this case it is not providing the actual dollar value of the yield, but the yield rate which can then be used to determine the cost based on the amount of money invested. It is important to note that this calculator refers to municipal bonds rates as coupon rates.
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Step 4
Input all the information into the corresponding fields. The form is dynamic so there is no need to hit a calculate button. Feel free to play with different values if you are considering different bonds. Also, be sure to read up on bonds on the site to see the current news relating to municipal bonds rates and other investing information
Comments
tonyb7542 said
on 1/6/2009 Thanks for the info.
chameleon said
on 1/6/2009 Useful information on calculating the value of bonds. I suspect a lot of people are digging out bonds they never expected to be cashing in so soon. 5*