Summary: Everyone seeks fortune. But managing financial affairs is not an easy cook for the general public since that business jargon and the complicated fluctuations in price have confused many investors who merely have the faintest idea of investment. At this point, bonds — a fixed income investment with a defined holding period — draws the attention of many, yet a less risky basket of this kind could still be affected by the ever-changing market.

Thus, we used Python and the universally-acknowledged bond valuation method, Discounted Cash Flow (DCF), to design an efficient and easy-understanding calculator to help green hands to estimate if they can receive the expected proportion of benefit from a given bond.

Understanding Bonds: What is a Bond and How Bonds Work

“A bond is a fixed income investment in which an investor loans money to an entity which borrows the funds for a defined period of time at a fixed interest rate.”

— Investopedia.com

▲ A Bond’s Lifetime (Source: Vanguard)

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