How to use the Bond Calculator
The bond calculator prices a bond from its coupon, market yield and years to maturity.
What you need to enter
- Face value ($)
- Coupon rate (% / year)
- Market yield (% / year)
- Years to maturity
- Coupons per year
The formula
Price = the present value of coupon payments + the present value of the face value, discounted at the market yield per period.
Worked example
Using the default values in the calculator:
- Face value ($): 1000
- Coupon rate (% / year): 5
- Market yield (% / year): 4
- Years to maturity: 10
- Coupons per year: 2 (semi-annual)
| Bond price | $1,081.76 |
| Annual coupon income | $50.00 |
| Current yield | 4.622% |
Tips for better results
- When yields rise, bond prices fall, and the reverse.
- Compare current yield with the yield to maturity.
Common mistakes to avoid
- Mixing up coupon rate and yield.
- Ignoring credit risk.
Please note: Calculators and guides give general estimates, not financial, tax or investment advice. Real offers depend on your lender, location and personal situation. See our Disclaimer.