Price a bond from its coupon, yield and time to maturity.
Calculated instantly in your browser.
How is a bond price calculated?
Price = Σ coupon ÷ (1 + y)ᵗ + face value ÷ (1 + y)ⁿ, where the coupon and yield y are per period and n is the number of periods. Bond prices move inversely to yields. For example, a $1,000 bond with a 5% coupon priced at a 6% yield over 10 years is worth about $926 — a discount.
Understanding your result
Bond prices move inversely to yields. When the market yield is above the coupon rate, the bond is worth less than par (a discount); when it is below, the bond trades at a premium.
Formula and method
Price = Σ coupon ⁄ (1 + y)ᵗ + face value ⁄ (1 + y)ⁿ, where the coupon and yield y are per period and n is the number of periods.
Assumptions and limitations
This prices a plain bond from the coupon, yield and maturity you enter, assuming fixed periodic payments and a single flat yield. It ignores accrued interest, credit and default risk, embedded call or put features, taxes and day-count conventions. Real market prices differ. Treat the value as an educational estimate, not investment advice.
Worked example
A $1,000 bond with a 5% coupon priced at a 6% yield over 10 years is worth about $926 — a discount.
How to use this tool
- Enter the face value and coupon rate.
- Enter the yield to maturity and years left.
- Choose the coupon frequency and read the price.
Common mistakes to avoid
- Mixing annual and per-period rates.
- Forgetting to match the coupon frequency to the yield.
About the Bond Price Calculator
The Bond Price Calculator values a bond as the present value of its future coupon payments plus its face value, discounted at the yield to maturity. It also shows whether the bond trades at a premium, discount or par.
Who should use this tool
Investors and finance students working with fixed income.
Benefits
- Price from coupon, yield and maturity.
- Annual, semi-annual or quarterly coupons.
- Flags premium, discount or par.
- Shows total coupon income.
Practical use cases
- Valuing a bond at the current market yield.
- Seeing how price moves with yield.
- Comparing bonds with different coupons.
Frequently asked questions
Why do bond prices fall when yields rise?
A higher discount rate lowers the present value of the bond’s fixed future payments, so its price drops.
What is par value?
The face value repaid at maturity, often $1,000. A bond priced at par equals its face value, which happens when the yield equals the coupon rate.
Does this price include accrued interest?
No. The figure is a clean present value of future coupons and face value at the yield you enter. When you buy between coupon dates, a dirty price adds accrued interest owed to the seller. This tool also omits credit risk, call features and day-count conventions that affect real quotes.