Bond Calculator
Find a bond's fair price as the present value of its coupon stream plus the discounted face value, and see its current yield instantly.
Example
A $1,000 bond pays a 5% annual coupon and matures in 10 years; the market yield (YTM) is 6%, coupons annual.
Each coupon is $50. PV of coupons = 50 × (1 − 1.06−10) / 0.06 = $368.00. PV of face = 1,000 / 1.0610 = $558.39. Price = $926.39 (a discount). Current yield = 50 / 926.39 = 5.40%.
How it works
Enter face value, annual coupon rate, market yield (YTM), years to maturity and coupon frequency; the tool discounts every coupon and the face value at the periodic yield. Price and current yield update live.
Good to know
This Bond Calculator estimates what a fixed-coupon bond is worth today by discounting every future coupon payment and the final face-value repayment back to the present at the market yield (YTM). You enter five inputs — face value, annual coupon rate, market yield, years to maturity, and coupon frequency (annual, semi-annual, quarterly, or monthly) — and it returns the bond price, current yield, the per-period coupon payment, and whether the bond trades at a premium, discount, or par. It is built for students learning fixed-income math, DIY investors comparing individual bonds, and anyone sanity-checking a broker's quoted price.
Reach for it when you know a bond's terms and the prevailing yield but want to see the fair price, or when you want to understand how a change in interest rates moves a bond's value. Because the calculator updates live, it doubles as a quick sensitivity tool: nudge the YTM up by a point and watch the price drop, or stretch the years to maturity to see how longer bonds swing more for the same yield change (duration in action).
To read the result, compare the bond price to the face value. A price below face means a discount, which happens when YTM is above the coupon rate; a price above face means a premium, when YTM is below the coupon rate. The two bars break the price into present value of the coupon stream versus present value of the face value, so you can see how much of the bond's worth comes from income versus the lump-sum repayment. Watch the "Trading at" and premium/discount figures together to confirm the direction.
One caveat: this is a clean-price estimate that assumes a flat yield curve, coupons reinvested at the YTM, and settlement on a coupon date, so it has no accrued interest, taxes, or credit spread baked in. Real transaction (dirty) prices will differ, especially between coupon dates and for lower-rated issuers — treat the output as an educational benchmark rather than a dealer quote.
Frequently asked questions
Why is the bond priced below face value (a discount)?
When the market yield (YTM) is higher than the coupon rate, the bond's fixed coupons are worth less than what investors could earn elsewhere, so its price falls below face value. If YTM is below the coupon rate the bond trades at a premium, and if they are equal it trades at par.
What is the difference between current yield and YTM?
Current yield is just the annual coupon divided by the current price, ignoring any capital gain or loss at maturity. YTM (yield to maturity) is the full internal rate of return that discounts every coupon and the face value back to the price, so it captures both coupon income and the pull-to-par effect.
Is my data uploaded anywhere?
No — this calculator runs entirely in your browser; nothing is uploaded.
Is this financial advice?
No. These are educational estimates — consult a qualified financial professional before making decisions.
People also ask
How do I calculate the price of a bond?
A bond's price equals the present value of all its coupon payments plus the present value of its face value, each discounted at the market yield per period. The calculator does this automatically once you enter face value, coupon rate, yield, maturity, and coupon frequency.
Why does a bond's price fall when interest rates rise?
A bond pays a fixed coupon, so when market yields rise, newer bonds offer more income and the older bond becomes less attractive. Its price drops until its effective yield matches the higher market rate.
What does it mean when a bond trades at par?
Trading at par means the bond's price equals its face value, which occurs when the market yield equals the coupon rate. The calculator labels this case 'Par' in the trading-at field.
Does coupon frequency change the bond price?
Yes, slightly. More frequent coupons (semi-annual, quarterly, monthly) deliver cash sooner, which generally raises the present value compared with annual coupons at the same nominal rate, so the calculated price can differ when you change the frequency setting.
What is the difference between clean price and dirty price?
The clean price excludes accrued interest since the last coupon date, while the dirty price (the amount actually paid) adds that accrued interest. This calculator reports a clean price, assuming settlement on a coupon date.
How does years to maturity affect a bond's sensitivity to yield changes?
Bonds with longer maturities generally change in price more for a given shift in yield because more cash flows are discounted over longer periods. You can see this by increasing the years-to-maturity input and watching the price move more sharply with yield.
Can a bond's price be higher than its face value?
Yes. When the market yield is below the coupon rate, the bond pays more income than comparable new bonds, so it trades at a premium above face value. The calculator flags this as 'Premium.'
Related calculators