Bond Price Calculator

Price a bond by discounting its coupons and face value at the market yield.

About Bond Price Calculator

A bond is the present value of its cash flows. When the market yield exceeds the coupon rate the bond must trade below face value for a buyer to earn that yield, which is the entire mechanism behind bond price moves. Bond prices move inversely to yields, and the size of that move is what duration measures.

Formula

Bond Price

Price = Σ coupon ÷ (1+y)ᵗ + face ÷ (1+y)ⁿ, with y the periodic yield

y: Market yield divided by payments per year
n: Total number of coupon periods

Worked example

With the default values below, Bond Price Calculator returns Bond Price of $925.61. Change any input above and every figure here is recalculated in your browser.

Inputs used

Face valueminimum 0.01: 1,000
Annual coupon rateaccepts 0–100 %: 5 %
Market yield to maturityaccepts 0–100 %: 6 %
Years to maturityaccepts 0.5–50 years: 10 years
Coupon payments per yearaccepts 1–12: 2

Results

Bond Price: $925.61
Price as Share of Face Value: 92.561%
Present Value of the Coupons: $371.94
Present Value of the Principal: $553.68
Discount or Premium: -$74.39

Step by step

1Values used
2Bond Price
3Bond Price= 925.61
4Price as Share of Face Value= 92.561
5Present Value of the Coupons= 371.94
6Present Value of the Principal= 553.68
7Discount or Premium= -74.39

Assumptions and limits

The result is derived only from the 5 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or fees or charges into account.
Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Bond Price calculated?

Price = Σ coupon ÷ (1+y)ᵗ + face ÷ (1+y)ⁿ, with y the periodic yield A bond is the present value of its cash flows. When the market yield exceeds the coupon rate the bond must trade below face value for a buyer to earn that yield, which is the entire mechanism behind bond price moves.

Why does Bond Price matter?

Bond prices move inversely to yields, and the size of that move is what duration measures.

What values do I need to enter?

This calculator takes 5 inputs: Face value, Annual coupon rate, Market yield to maturity, Years to maturity, Coupon payments per year. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.