Bond Calculator
Bond price from coupon and yield.
Inputs
$
%
%
yrs
Result
Bond Price$925.61
Coupon Payment$25.00
Total Coupons$500.00
About the Bond Calculator
The Bond Calculator estimates the price of a bond as the present value of its future coupon payments and its face value at maturity, discounted at the market yield.
Calculation method
Sum the present value of each coupon plus the present value of the face value, discounted at the yield to maturity.
Price = Σ (Coupon / (1 + y)^t) + Face / (1 + y)^nHow to use this calculator
- Enter the face value, coupon rate, and years to maturity.
- Enter the market yield (YTM).
- See the fair price.
Example
A $1,000 face bond with a 5% coupon and 10 years to maturity trades at $926 when the market yield is 6%, since higher yields depress bond prices.
Frequently asked questions
Why do bond prices fall when rates rise?
New bonds pay the higher rate, so existing lower-coupon bonds must trade at a discount to offer the same yield to a buyer.
What is yield to maturity?
The single discount rate that makes the bond's price equal to the present value of all its future cash flows. It represents the annualized return if held to maturity.
What is duration?
A measure of a bond's price sensitivity to interest-rate changes. Longer duration bonds move more when rates change.
Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional for decisions specific to your situation.