Bond Price Calculator
What should a bond be worth at today’s yields?
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Bond Price Calculator by TheCalcTools
How the Bond Price Calculator works
Enter the bond’s face value, coupon rate, the yield you require and the years to maturity.
Each coupon and the face value are discounted at the periodic yield.
The price is the sum of those present values.
The formula
Worked example
Using the default values shown in the calculator:
| Face value | $1000 |
|---|---|
| Annual coupon rate (%) | 5 % |
| Yield to maturity (%) | 6 % |
| Years to maturity | 10 |
| Coupons per year | Semi-annual |
- Semi-annual coupon = $1,000 × 5% ÷ 2 = $25, over 20 periods at 3% each.
- Price = $925.61, which is 92.56% of face value.
- The bond trades at A discount (yield above coupon); current yield 5.40%.
Result:
| Bond price | $925.61 |
|---|---|
| Price as % of face value | 92.56% |
| Current yield | 5.40% |
| Trades at | A discount (yield above coupon) |
Frequently asked questions
Why does the price fall when yields rise?
New bonds pay higher coupons, so older lower-coupon bonds must sell for less to give buyers the same yield.
What is current yield?
The annual coupon divided by the current price. It ignores the gain or loss at maturity.
Sources and further reading
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This calculator gives estimates for information only. It is not financial advice, and your lender's or provider's figures will govern. Rates, fees and rules vary. See our disclaimer.