Thomas J. Brennan

OID Calculator

The java applet linked to the button below performs original issue discount and bond premium amortization calculations to determine the tax treatment of debt under applicable Treasury Regulations.

Pushing the button below activates three additional windows. You may adjust the characteristics of the bond in the upper window on the left. The upper window on the right displays information about the tax treatment for the bond. It also allows you to specify the yield to maturity, and such a specification effects a change to the issue price of the bond that will result in the desired yield. The lower window provides a graphical display of information about the tax treatment.

NOTA BENE: THIS APPLET IS PROVIDED FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE TAX ADVICE. YOU SHOULD CONSULT YOUR TAX ADVISOR TO DETERMINE THE TAX TREATMENT OF ANY PARTICULAR SITUTATION.