How to Know How Much a Bond Is Worth Over Time?

by Louise Balle

A bond is a fairly safe long-term investment vehicle that promises a set payment at a certain date in the future in exchange for a payment today. The bond issuer is commonly a government entity or corporation. A number of online tools provide you with information about your bond’s worth over time as long as you have basic information about the investment handy.

1. Use an online bond valuation calculator to estimate bond value. Enter the years to maturity, yield to maturity (rate of return), coupon rate and face value (price) of the bond to display the value. This tool may also provide you with a breakdown of how the value is determined.

2. Enter details about the bond into software designed for complex calculations. Enter four pieces of data — the face value of the bond, number of months until the bond matures, coupon rate and expected market interest rate (rate of return) — to determine the market value of the bond. Some software, such as Calculator Pro, allows you to retrieve the web code for a “Results Badge” that lists the bond valuation on your personal website.

3. Calculate a bond’s worth at a certain point in the future using the Treasury Direct calculator. This tool is provided by the U.S. Department of the Treasury for bond holders. Pick the bond series (EE, I, E or savings notes), denomination, date of issue and serial number, if available. The tool reveals the value of the bond since the issue date.