Bond Calculator
A bond’s price and its yield are two sides of the same equation. Enter the face value, coupon rate and maturity, then either price the bond at a given yield — or work backwards from a market price to the yield to maturity.
Results
Formula
How to use this calculator
- Pick the mode: price from yield, or yield from price.
- Enter face value, coupon rate, years and payment frequency.
- Fill in the yield (or the price) for your mode, then Calculate.
Worked example
A $1,000 bond, 5% coupon paid semiannually, 10 years to maturity, priced to yield 5%.
- Each coupon payment: 1,000 × 5% ÷ 2 = $25.
- Discounting 20 coupons plus the face value at 2.5% per period gives exactly $1,000.
Result: When the yield equals the coupon rate, the bond prices at par: $1,000.
Frequently asked questions
Why does the price fall when yields rise?
The bond’s fixed coupons become less attractive versus new bonds paying more, so its price drops until its yield matches the market. Price and yield always move in opposite directions.
What is current yield vs yield to maturity?
Current yield is just annual coupons ÷ price — it ignores the gain or loss when the bond matures at face value. YTM includes that, which is why it is the standard comparison measure.
Are accrued interest and settlement dates handled?
No — this calculator values the bond on a coupon date for clarity. Real trades add accrued interest between coupon dates.
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