Return on Bond Calculator

Formula

To calculate the Return on Bond ($ROB$):

\[ ROB = \frac{CV - PP}{PP} \times 100 \]

Where:

$ROB$ is the Return on Bond (%)
$CV$ is the Current Bond Value ($)
$PP$ is the Bond Purchase Price ($)

What is Return on Bond?

The return on bond is a measure of the profit or loss made on a bond investment, expressed as a percentage of the bond's purchase price. It helps investors evaluate the performance of their bond investments.

Example Calculation 1

Let's assume the following values:

Current Bond Value ($CV$) = $1100
Bond Purchase Price ($PP$) = $1000

Using the formula:

\[ ROB = \frac{1100 - 1000}{1000} \times 100 = 10 \% \]

The Return on Bond is 10%.

Example Calculation 2

Let's assume the following values:

Current Bond Value ($CV$) = $950
Bond Purchase Price ($PP$) = $1000

Using the formula:

\[ ROB = \frac{950 - 1000}{1000} \times 100 = -5 \% \]

The Return on Bond is -5%.