An ARI Exclusive Bond Calculator

The Annexus Research Institute has teamed up with Wade D. Pfau, Ph.D. to develop a case study tool that demonstrates the unique relationship between interest rates and bond prices.

What’s the purpose of this Bond Case Study tool?

The retirement landscape has undergone seismic change since 2008 and the bond market has not been immune to this volatile environment. To help financial professionals better understand this changing dynamic, the Annexus Research Institute and Wade D. Pfau, Ph.D. have teamed up to create an interactive case study tool that allows users to explore the relationship between interest rates and bond prices. On the left-hand side of the calculator, one can calculate the market price for an existing bond based on its characteristics and current interest rates. On the right-hand side of the calculator, one can explore the impact of future interest rate changes on the bond price.

Bond prices are inversely related to interest rates. If interest rates increase, the prices for existing bonds will decrease so that the yield to maturity earned by anyone purchasing an existing bond would match the yields available on new bonds at the higher market interest rate. The calculator allows users to explore this relationship with realistic bond examples of their choosing. Click HERE to explore the Bond Calculator!

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CLICK TO ACCESS THE TOOL

Financial Professional Use Only – Not for Public Use

IMPORTANT: The dynamic output and displayed information is modeled and generated based upon the possible investment outcomes using the relationship between interest rates and bond prices, which are hypothetical in this model and do not reveal actual investment results. Furthermore, there is no guarantee of future results. Other investment scenarios not entered or considered may influence outcomes not analyzed in this model.