The bono calculator provided by Hesapstan is designed to calculate the price you need to pay today for a short-term discount debt security (bono), and the effective annual yield on your investment, based on the face value, an assumed annual discount rate, and the number of days to maturity.
What is a bono and how is it priced?
A bono is a short-term debt security issued by a government or a company, which typically pays a fixed face (par) value at maturity. Instead of paying periodic interest coupons, a bono is sold at a discount (below its face value); the investor pays the discounted price today, receives the face value at maturity, and the difference is the return.
Purchase Price = Face Value × (1 − Annual Rate/100 × Days/365).
Why does the effective yield differ from the discount rate?
The discount rate is calculated on the face value, but you actually invest the lower purchase price. So expressing your actual return on the amount you invested (the purchase price) gives a more accurate comparison figure, and this effective yield is always somewhat higher than the discount rate you entered.
How is this different from the bill discount calculator?
Hesapstan's inner/outer discount calculator (iskonto) is framed around a business discounting a trade note early with a bank. This tool is framed around an investor purchasing a bono-type debt security and evaluating the return they will earn; while the underlying math is similar, the purpose and the presented results (purchase price plus effective yield) differ.
What does this tool not calculate?
- It does not provide a current or live market price, interest rate, or yield; you enter the rate yourself.
- It does not price coupon-paying (periodic interest) debt instruments; it calculates only a single-payment discount structure.
- It does not include transaction commissions, taxes, or brokerage fees.
Frequently Asked Questions
How is the bono purchase price calculated?
It is calculated by discounting the face value based on the annual discount rate and the days to maturity: Purchase Price = Face Value × (1 − Rate/100 × Days/365).
Why is the effective yield higher than the rate I entered?
Because the discount rate is calculated on the face value, but you invest the lower purchase price; expressing the return on the amount you invested gives a slightly higher figure.
Does this tool show a current bono rate or price?
No. You enter the rate yourself; this tool does not fetch live market data and does not represent an actual brokerage quote.
Can I use this for coupon-paying bonds?
No, this tool is only for single-payment discount instruments. Bonds with periodic coupon payments require a different calculation and are not covered by this tool.