HTTP vs HTTPS The significance of S: Http or the hypertext transfer protocol is something we use when we access the internet. Though we seldom notice it if at all, it plays a very essential role.
This is because the interest rate risk (risk of missing out on higher interest rates) decreases the closer bonds get to their maturity dates. With that, let's use the Bond Value Calculator to calculate the price of a bond given its face value, coupon rate, market rate, and years-to-maturity. Next enter the current market rate and the number of years to maturity, then click the Calculate Bond Valuation button.
For example, if a $1,000 par value bond has a 5% coupon rate, each year the holder of that bond will earn 5% of $1,000, or $50 (0.05 x $1,000 = $50). Yield-to-maturity is the yield calculation used to compare the values of bonds with different issue and maturity dates, coupon rates, and par values.uration Is a Guide to Selecting Bonds. A bond is issued with a stated value, known as the par, or face, value. This is the value at which the bond will be bought back by the issuer upon its maturity. Though there are exceptions to the rule, most bonds are issued with a $1,000 par value.