Free Tools Suite / Tool 04

Interest Rate Risk Simulator

Model how brokered CDs, individual bonds, and fixed income funds behave when interest rates shift. Stress-test instant rate shocks, gradual yield curves, and mean-reverting environments — and see why duration and your reinvestment horizon drive real outcomes far more than rate predictions.

How It Works

Runs exact Macaulay & Modified Duration and bond pricing math across configurable rate curves. Compares hold-to-maturity individual CDs against constant-duration bond funds with full coupon and principal reinvestment modeling.

Core Scenarios

Stress-test instant ±100 to ±300 bps Fed rate hikes/cuts, linear path transitions, and TIPS real-yield inflation breakevens with full wealth-index decomposition.

1. Security & Structure

Instrument Type

Holding Profile

2. Rates & Horizon

Maturity (Years)

Horizon (Years)

Starting Yield (%)

Benchmarks:

Coupon Mode

3. Rate Path Scenario

Path Trajectory

Ending Yield / Shock Target (%)

Shocks:

Payment Frequency

Ending Wealth

$100.00

+0.00% Total

Annualized Return

0.00%

CAGR over Horizon

Modified Duration

0.00 yrs

Convexity: 0.00

Max Drawdown

0.00%

Breakeven: Instant

Total Return Trajectory ($100 Invested)

Cumulative Return Decomposition ($100 Base)

Price / Capital Gain

$0.00

Coupon + Reinvestment

$0.00

Inflation Impact (TIPS)

$0.00

Period By Period Breakdown

Year	Yield (%)	Total Index	Price PnL	Income ($)	Period Ret (%)