Help Figuring Out Returns on Bonds?

Question

An investor purchased an 8% bond which matures in 10 years at 95.

How much will the investor recieve when the bond matures?

Answer 1

I could give you a general formula, but there exist many variables from bond to bond, such as how often it is compounded, et.al.

So, the best way is to go to the web site of the financial institution that issued the bonds, and see if they have a calculator.

If they are US savings bonds, make sure to use the government web site as I am sure they have a calculator just for this purpose.

The next best way is to google for a 'bonds calculator'

This helps eliminate compounding and other possible mistakes.