This repo offers an interactive way for studying the bond price sensitivity as a function of:

• coupon rate
• coupon frequency
• time-to-maturity (TTM)
• yield to maturity
• market interest rate

In case you do not want to install anything just visit the interactive plot.

This code is tested to run correctly with

• R version 4.5.1 (2025-06-13) -- "Great Square Root"
• RStudio Version 2025.09.0+387 "Cucumberleaf Sunflower" Release (af5fc22a687c0f462ee27c6afeeee38ee46507b9, 2025-09-11) for Ubuntu Jammy Older versions could also work.

Two packages are direct dependencies when you want to try the code locally:

• manipulate - for interactive plot
• testthat - in case you want to run the Unit Tests

The latest R version can be downloaded from here, while the latest RStudio from here.

Command

setwd("~/bonds") # adjust the path as needed
source("./interactive_bonds.R")

in RStudio console, or open interactive_bonds.R in RStudio and press Source button. After this you should generate the interactive plot like this:

The example is completly theoretical as it assumes that at time when when the bond with coupon rate c (and selected TTM and coupon frequency) is issued, we select the required Yield. If the yield matches the coupon rate the price matches the face value (expresed as percentage) and there is no risk. However, if some new interest rate is applied ( see x-axes on top), we can observe the new theoretical price (in second y- axis). In addition the script calculates the Macaulay’s duration, modified duration, convexity and convexity effect.