Bond price calculator
Calculate the price of a fixed-rate coupon bond from its yield to maturity, or solve the yield from a market price. Results also include current yield, price as a percentage of par, and duration.
Bond price formula
A plain fixed-rate bond is the present value of its remaining coupon payments plus the face value repaid at maturity:
Price = Σ C ÷ (1 + y/m)t + F ÷ (1 + y/m)n
F is face value, C = F × coupon rate ÷ m, y is nominal annual yield to maturity, m is payments per year and n is the number of remaining payment periods. When solving for YTM, the calculator finds the rate that makes the discounted cash flows equal the entered market price.
Yield and duration outputs
- Current yield is annual coupon income divided by market price. It excludes the gain or loss from receiving face value at maturity.
- Macaulay duration is the present-value-weighted average time to receive the cash flows.
- Modified duration divides Macaulay duration by
1 + y/mand approximates price sensitivity to a small yield change.
Checked examples
- Price from YTM: a 10-year, US$1,000 bond with a 5% coupon, semiannual payments and 6% nominal YTM has a price of about US$925.61.
- YTM from price: the same bond priced at US$925.61 returns a nominal annual YTM of about 6.00%.
- Zero coupon: US$1,000 due in five years at 4% annual yield has a price of about US$821.93.
Assumptions and limits
- The settlement date is assumed to fall exactly on a coupon date, so accrued interest, day-count conventions and clean-versus-dirty price adjustments are not modeled.
- Coupons are fixed, all payments occur on time and the bond is held to maturity. Default, taxes, fees, inflation and reinvestment outcomes are excluded.
- Callable, puttable, floating-rate, inflation-linked, amortizing and U.S. Series I/EE savings bonds require different models.
- Duration is a local sensitivity estimate, not a guaranteed price change. Large yield moves require full repricing.
- This calculator is educational and is not investment advice or a market quote.
Related calculators
Use the Time Value of Money Calculator for a single value or level payment stream, the NPV Calculator for uneven cash flows, and the APY Calculator to compare nominal and effective annual rates.
References
FINRA’s explanation of bond yield and return defines current yield and YTM, notes the inverse relationship between price and yield, and describes YTM as the discount rate equating future coupons and principal with price. The U.S. Treasury interest-rate statistics provide market yield-curve context; those rates are not inserted automatically here.