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Finance & LoansGenerated accuracy model review: 2026-05-06
Bond Calculator accuracy and testing
This page documents how Calwarden builds trust for this calculator: source notes, regression-style default tests, limitations, assumptions, unit handling, rounding, and visible change history.
Formula source
- 1. **Current Yield** = Annual Coupon Payment / Current Price. 2. **YTM (Yield to Maturity)**: A complex formula solving for the internal rate of return that equates the current price to all future coupon payments and the face value repayment.
Test cases
Default input regression check
Generated from the checked-in default inputs and calculate function.
Inputs
- Face Value (Par): $1,000
- Current Price: $950
- Coupon Rate: 5%
- Years to Maturity: 5 Years
Expected outputs
- Yield to Maturity (Est): 6.15%
- Current Yield: 5.26%
Known limitations
- Uses an approximation formula for YTM which is accurate enough for most retail investors but slightly less precise than iteration for very long terms.
Assumptions
- Inputs are interpreted exactly as entered in the calculator form.
- The calculation runs locally in the browser using the current checked-in calculator definition.
Unit handling
- Face Value (Par) accepts values in $.
- Current Price accepts values in $.
- Coupon Rate accepts values in %.
- Years to Maturity accepts values in Years.
- Yield to Maturity (Est) is displayed as a percentage.
- Current Yield is displayed as a percentage.
Rounding rules
- Number displays use up to 2 decimal places in the calculator UI.
- Percent outputs are displayed with two decimal places.
Version history
1.0.0 - 2026-05-06
Generated accuracy and testing page from the current bond-yield-calculator calculator definition.
Change log
2026-05-06
Published default regression test documentation and metadata fallbacks for Bond Calculator.
Calculator transparency
Accuracy pages are generated from checked-in calculator definitions and can be upgraded with curated review metadata over time.