How to calculate interest on bonds and debentures

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Daya

Daya (Querist)
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03 January 2025 is correct way to calculate interest on bonds and debentures
=Face Value /Quantum value x Coupon Rate

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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03 January 2025 More accurately:
(Face Value x Coupon Rate x Time) / 100
Where:
Face Value is the principal amount of the bond or debenture.
Coupon Rate is the interest rate offered by the bond or debenture.
Time is the time period for which the interest is being calculated (usually expressed as a fraction of a year).