Description
Compute accruedBond = bond*(1+annualRate)^years, refund = accruedBond*(1-forfeitedFraction) and forfeiture = accruedBond*forfeitedFraction.
Discounting expresses a future amount on a chosen present-value basis. The rate must match the period and compounding convention, while the currency price year and the choice of social or private discount rate remain separate assumptions.
Compute accruedBond = bond*(1+annualRate)^years, refund = accruedBond*(1-forfeitedFraction) and forfeiture = accruedBond*forfeitedFraction.
When to use this tool
Use Restoration Bond Refund Interest Term when checking one supplied discount, accrual or carry-value contribution.
How to use the tool and how it works
- Enter bond, annualRate, years, forfeitedFraction. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read accruedBond, refund, forfeiture. Use the output convention below.
Require nonnegative bond, annualRate > -1, years >= 0 and forfeitedFraction in [0,1]. Compute accruedBond = bond*(1+annualRate)^years, refund = accruedBond*(1-forfeitedFraction) and forfeiture = accruedBond*forfeitedFraction.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| bond | Bond | Required. Finite number; minimum 0. |
| annualRate | Effective annual rate as a fraction, for example 0.03 for 3%. | Required. Finite number; strictly above -1. |
| years | Elapsed years matching the annual effective rate, possibly fractional. | Required. Finite number; minimum 0. |
| forfeitedFraction | Forfeited Fraction | Required. Finite number; minimum 0; maximum 1. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| accruedBond | Accrued Bond | Required. Finite number. |
| refund | Refund | Required. Finite number. |
| forfeiture | Forfeiture | Required. Finite number. |
{
"input": {
"bond": 10000,
"annualRate": 0.1,
"years": 2,
"forfeitedFraction": 0.2
},
"output": {
"accruedBond": 12100.000000000002,
"refund": 9680.000000000002,
"forfeiture": 2420.0000000000005
}
}Limitations and assumptions
- annualRate is an effective annual fraction and years may be fractional. This assumes forfeiture applies to the whole accrued balance, with no fees or tax; actual bond conditions and refund rights are not determined.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use a justified rate convention and complete cashflow schedule, including uncertainty and timing, when evaluating a real policy or investment.
References
Similar or alternative tools
- Restoration Bond Refund Share
Return grossEntitlement = bond*acceptedFraction and remainingRefund = grossEntitlement-retainedCosts-refunded.
- Venture Round Post Money Dilution Term
Return postMoney = preMoney+investment, newShares = previousShares*investment/preMoney and founderPostFraction = founderShares/[previousShares*(1+investment/preMoney)].