Bond Price Calculator
Price a bond from its face value, coupon rate, yield to maturity, and term to see its present value, total coupon income, and current yield.
Independently verified for accuracy
Calculator by Toolsloft ↗- Bond price
- 925.61
- Total coupons
- 500
- Current yield (%)
- 5.4
This calculator prices a bond from its face value, coupon rate, yield to maturity, and remaining term. It shows what the bond is worth today, the total coupon income you would collect, and the current yield at that price.
How this is calculated
A bond's price is the present value of its remaining coupon payments plus the present value of the face value, discounted at the yield to maturity per period. Each coupon equals the annual coupon rate applied to face value, split across the number of payments per year, and the per-period discount rate is the yield to maturity divided by that same number of payments.
How to use
- Enter the face value and the annual coupon rate.
- Enter the yield to maturity and the number of years until maturity.
- Set how many coupon payments are made each year.
- Read the bond price, the total coupons paid over the term, and the current yield at that price.
Examples
- $1,000 face, 5% coupon, 6% YTM, 10 yr, semiannual:
price $925.61 - $1,000 zero-coupon, 3% YTM, 10 yr, semiannual:
price $742.47
FAQ
- Why does a bond trade below its face value when the yield to maturity is above the coupon rate?
- The coupon payments are fixed, so when buyers demand a higher yield than the coupon provides, the only way to deliver that yield is to pay less than face value. The discount makes up the difference, which is why such bonds trade below par.
- What does current yield mean?
- Current yield is the annual coupon income divided by the bond price, expressed as a percent. It measures the income return at the current price and ignores any gain or loss from holding the bond to maturity.