This is an example for the bond calculator. See also the usage description and the Yield to Maturity example..
Suppose the government issues a bond on January 15, 2000, with a nominal value of $1000 paying 3% interest each half year. The bond is repaid on January 15, 2015. On May 2, 2008, the yield to maturity of a similar bond is 5.94%. The buyer of the bond has to pay a part of the current coupon to the seller, on top of the market price. The question is how to compute the expected market value on May 2, 2008 of this bond.
In order to compute the market value enter the following values into the fields of the bond calculator:
Field name  Value  Remark 
Nominale interest (% per year)  6  Three percent per half year makes 6 percent per year. 
Coupon period  6 months  Interest will be payed every 6 months. 
Date computation  20080502  Enter the date on which the Yield to Maturity will be computed. The format is YYYYMMDD. 
Maturity date  20150115  The date format is again YYYYMMDD. From the coupon period and the maturity date the coupon dates are computed. 
Interest in advance or afterwards  afterwards  Almost always interest is paid at the end of each coupon period. 
Nominal value  1000  Principal amount paid back at the maturity date. 
Compute Yield to Maturity or Value  Yield  Select the type of computation 
Yield to maturity  5.94  Equivalent interest rate for this bond. 
The result of the calculation is a dirty price of $1025.72, including a the first part of the current coupon of $17.63. So the bond will be traded at about $1008.
The Modified Duration is 5.22. This means that the clean price of this bond goes down 5.22 times as fast as the interest increases. So if the yield to maturity of similar bonds goes up by 1% then the price of the bond on the stock market will go down by about 5%.
