Bond Price Calculator
Calculate the theoretical price of a fixed-rate bond given its face value, coupon rate, yield to maturity, and time to maturity. Supports annual and semi-annual coupon frequencies.
Results
What is it?
The Bond Price Calculator determines the fair market value of a fixed-rate bond by discounting all future cash flows (coupon payments and par value at maturity) back to today using the required yield to maturity. When the coupon rate exceeds the market yield the bond trades at a premium; when it is below, the bond trades at a discount.
How to use
Enter the bond's face value (typically $1,000), the annual coupon rate, the desired yield to maturity, years remaining until maturity, and coupon frequency (annual or semi-annual). Click calculate to see the bond's theoretical price, the dollar premium or discount relative to par, and the current yield.
Example scenario
A corporate bond has a $1,000 face value, 5% annual coupon paid semi-annually, 10 years to maturity, and the market yield is 4%. The calculator prices the bond at approximately $1,081.11 — an $81.11 premium — because its coupon rate exceeds the required yield. The current yield is about 4.62%.
Pro tip
Bond prices and yields move inversely. A 1% rise in market yields can reduce a 10-year bond's price by roughly 7-8%. Always compare the current yield with the YTM — current yield ignores capital gains or losses at maturity, so it can be misleading for bonds trading far from par.