Bonds & OVDP Calculator — Online Yield Calculation

Government bonds (OVDP) are one of the simplest and safest ways to preserve and grow your savings. Here are the core concepts and essentials every beginner should know:

In everyday calculations, people often approximate real yield by simple subtraction: Nominal Yield - Inflation (e.g. 3.15% - 2.90% = 0.25%). However, professional finance uses the exact Irving Fisher Equation: r_real = (1 + r_nominal) / (1 + i) - 1. For a 3.15% USD bond with 2.90% inflation, r_real = (1.0315 / 1.0290) - 1 = +0.24% per year. Division by (1 + i) accounts for the fact that price inflation devalues not only your initial principal, but also the accrued coupon income.

Nominal payout is the exact cash sum received at maturity (Principal + Net Profit). Real payout discounts that future cash into today's prices: Real Payout = Nominal Payout / (1 + i)^t. Because prices rise over time, a dollar in the future buys fewer goods than a dollar today. With positive inflation, real payout is always less than or equal to nominal payout, showing what that money can actually buy in today's terms.

Ukraine government bonds (OVDP) are completely exempt from taxation (0% personal income tax and 0% military levy). In contrast, commercial bank deposits are subject to a combined 23% tax (18% PIT + 5% Military levy). To generate the same net cash yield as an OVDP at 16.50%, a commercial bank must offer a deposit rate of 16.50% / (1 - 0.23) = 21.43% per year.

The Rule of 72 is a proven mathematical shortcut in financial planning to estimate the number of years needed to double real capital: Doubling Years ≈ 72 / Real Yield. For instance, with an 8.37% real yield, capital purchasing power doubles in approximately 72 / 8.37 ≈ 8.6 years. If real yield is near zero (e.g. +0.24%), capital is protected from devaluation but does not effectively double over standard horizons.

No, inflation does not equal devaluation, and they cannot simply be added together (e.g. 8% inflation + 10% devaluation does not mean an 18% loss). They are fundamentally distinct economic phenomena measuring loss of purchasing power against different benchmarks:

How they connect: devaluation partially passes through into inflation (exchange rate pass-through effect). Because imports make up roughly 30–40% of Ukraine's consumer basket, a 10% currency devaluation adds approximately 2.5–3.5% to domestic consumer inflation, not the full 10%. Domestic services and local goods do not automatically react 1:1 to exchange rate swings.