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Bond Calculator
Work out the fair price of a bond from its face value, coupon and the yield investors currently require.
Bond Price Calculator
Calculate the current market value (Price) of a bond based on yield and coupons
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Bond Market Price
Current present value of all future cash flows
Annual Coupon
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Premium/Discount
Premium
Total Cash Flows
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Bond Valuation Analysis
A bond's coupon is fixed, but its price moves every day with market interest rates. This calculator works out what a bond is worth today, and what return you would earn if you bought it at a given price and held it to maturity.
How to use this calculator
- Enter the bond's face (par) value and annual coupon rate.
- Add the years remaining to maturity and how often coupons are paid.
- Enter the market interest rate (for price) or the purchase price (for yield).
- Press calculate to see the price, current yield and yield to maturity.
Price and yield move in opposite directions
When market rates rise above a bond's coupon, the bond must sell at a discount to compete; when rates fall, it sells at a premium. Yield to maturity captures the full return including that price difference, which is why it is the number investors compare.
Frequently asked questions
What is yield to maturity?
It is the total annual return you earn if you buy the bond at today's price, collect every coupon, and hold it until it matures and repays face value.
What is the difference between coupon rate and current yield?
The coupon rate is fixed on the face value. Current yield is the annual coupon divided by the price you actually paid, so it changes with the market price.
Do bonds pay interest monthly?
Most government and corporate bonds pay every six months, though some pay quarterly or monthly. Set the payment frequency to match your bond.