Enter the coupon, purchase price and maturity date of a specific issue - the calculator instantly shows the yield three ways and the income in money. Individual income from OVDP bonds is not taxed.
The calculation is approximate and is not investment advice. The actual yield depends on the price at a specific auction or on the secondary market - check the terms on mof.gov.ua before buying.
How OVDP bond yield is calculated
An OVDP bond (domestic government loan bond) is a debt security issued by the Ministry of Finance of Ukraine. By buying an OVDP bond you effectively lend the state money for a set term at a fixed coupon (interest rate), and on the maturity date you get the bond's face value back.
The coupon is paid regularly - usually twice a year, sometimes once a year - in the amount of (face value × coupon rate / number of payouts per year). If you buy a bond not at face value but at a different price (at an auction or on the secondary market), your actual income consists of all the coupons received plus the difference between the face value and the purchase price.
The calculator computes three yields. Simple annual yield is the total income to maturity, annualized without compounding: (sum of coupons + face value − price) / price × 365 / days to maturity. BEY (bond-equivalent yield) is the standard way to compare bonds with a semiannual coupon, accounting for the ability to reinvest money mid-term. Effective yield is the internal rate of return (IRR) of the whole payment schedule, which additionally assumes every coupon is immediately reinvested at the same rate - so it is always the highest.
Example (the same one used in the calculator's tests): a bond with a 16% annual coupon paid twice a year at 80 UAH each (face value 1,000 UAH), bought at 980 UAH, maturing in exactly one year. Income = 2 × 80 UAH in coupons + (1,000 − 980) UAH difference = 180 UAH per bond.
Simple annual yield = 180 / 980 × 100% ≈ 18.37%. BEY = 18.28% (slightly lower than simple - that is the standard way to compare bonds with a semiannual coupon). Effective yield (reinvesting coupons at the same rate) = 19.11% - the highest of the three, because the first 80 UAH coupon, received after six months, still has another six months to "work".
If you buy the same bond exactly at face value (1,000 UAH), the income consists only of the coupons: simple yield and BEY are equal and match the coupon rate - 16.00%, while effective yield (with reinvestment) is 16.64%.
OVDP versus a deposit: which gives more net income
Individual income from OVDP bonds is not taxed (0% personal income tax and military levy), while a deposit loses 23% of accrued interest to tax. So even with a lower nominal rate, OVDP bonds often bring more money home. An approximate example for 100,000 UAH over one year:
| OVDP | Deposit |
|---|
| Investment amount | 100,000.00 грн | 100,000.00 грн |
| Rate | 16.00 % | 13.50 % |
| Income tax | 0 % | 23 % |
| Net income per year | 16,000.00 грн | 10,395.00 грн |
The example is approximate: an OVDP bond with a 16% annual coupon priced at face value versus a deposit at the average bank rate of 13.5% per year. In reality both bank rates and bond purchase prices change constantly - check current figures on mof.gov.ua and in the "Banks" section.
Everything about calculating OVDP bond yield
OVDP bonds, often called "war bonds" in everyday speech, are one of the most popular ways to preserve and grow money in Ukraine during the full-scale war. The calculator helps you work out in advance exactly how much a specific issue will earn you, and compare that figure to a deposit.
Why bond yield is calculated three different ways
There is no single "correct" way to calculate bond yield in finance - there are several standards, each with its own logic. Simple annual yield is the easiest to understand but ignores compounding. BEY is the industry standard for comparing bonds with a semiannual coupon to each other. Effective yield most accurately shows how much you will earn if you reinvest every coupon at the same rate - and it is the closest to how large brokers and exchanges calculate bond yield.
Why OVDP bonds use the "dirty" price, not face value
At auctions and on the secondary market a bond is almost never sold exactly at face value - the price depends on current market rates and on how much coupon income has already "accrued" since the last payout. That is why a purchase order always states the "dirty" price - and that is exactly what you should enter into the calculator, not the bond's face value.
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