bonds-cmp

Tool for comparing profitability of treasury bonds

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Features

• customization of investment parameters,
• customization of bonds parameters,
• comparison of bonds (charts),
• optional adjustment for inflation,
• data export/import,
• sharing via url,
• two languages: en and pl.

The tool was developed to help people answer the following question: "Which bonds will be more profitable in my case?". It was inspired by people purchasing 4-year bonds instead of 10-year bonds, because they didn't want to freeze their money for a decade. However, it was more profitable to cancel 10y bonds after 4 years than to keep 4y bonds for the same duration. Many people didn't do the calculation and they lost an opportunity to earn more money.

Disclaimers

• This is not an investment recommendation.
• Computer programs may have bugs - always do your own calculations before investing.

Demo

• https://pazderski.dev/bonds/?lng=en
• https://pazderski.dev/obligacje/?lng=pl

Building and deployment

git clone https://github.com/wpazderski/bonds-cmp.git
cd bonds-cmp
npm ci
npm run build

Upload contents of ./build/ directory to your server (destination directory depends on server's configuration). See CRA deployment documentation for more information.

Usage

1. Click the flag in the top-right corner if you want to change interface language.
2. Open Settings tab (open by default) to adjust investment and environment parameters:
   • currency, amount of money to invest, investment duration and income tax rate,
   • whether to automatically adjust interest rates if bonds are repeated (it happens if investmentDuration > bondsDuration),
   • predicted inflation rates and reference rates.
3. Open Bonds tab to configure bonds. There are some bonds defined by default - these are treasury bonds offered in Poland. You can remove them and add your own bonds.
   • each interest period can be repeated ("Number of repeats") - there is a difference between 3x4months and 1x12months because of cancellation policy, capitalization and additive inflationRate/referenceRate,
   • configure interest rate; example:
     • percent is 5.5%,
     • "Add inflation" is enabled and inflation rate is 13.7%,
     • "Add reference rate" is enabled and reference rate is 8.25%,
     • interest rate is 5.5% + 13.7% + 8.25% = 27.45%,
   • configure cancellation policy (fees applied if you cancel the investment before current interest period ends),
   • you can add more interest periods.
4. Open Charts tab to compare bonds. There are 4 charts available:
   • "Total": amountInvested + interest - cancellationPolicy(if applicable) - incomeTax,
   • "Only earnings": does not include amountInvested,
   • "Total, adjusted for inflation": same as "Total", but reduced by inflation; example: total=575, inflation=15%; adjustedTotal=575 / (1 + 0.15)=500,
   • "Only earnings, adjusted for inflation": same as "Only earnings", but reduced by inflation.
5. If you want to save, export/import or share your results, go to Save / Import / Share tab.