Current Yield
5.40%
Bond Calculator
Estimate bond price and yield to maturity from coupon and market rate inputs.
Bond Price
$925.61
Premium/Discount
-$74.39
Coupon Payment
$25.00
Total Periods
20
Trading at a discount (market yield above coupon rate).
How to use the Bond Calculator
The Bond Calculator is free and runs entirely in your browser — no sign-up, and nothing you enter leaves your device. It opens pre-filled with a realistic example, so you can see how it works before replacing any figure with your own; the results update as you type. Press Calculate to refresh the result panel, or Reset to return to the example.
The inputs it asks for:
- Face Value — a dollar amount.
- Annual Coupon Rate — a percentage (enter 6 for 6%).
- Market / Required Yield — a percentage (enter 6 for 6%).
- Years to Maturity — a number.
- Coupon Frequency — choose one — Annual, Semi-Annual.
The formula
A bond's price is the present value of everything it pays: each coupon, plus the face value returned at maturity, all discounted at the market's required yield.
Price = C·(1 − (1 + r)⁻ⁿ)/r + Face·(1 + r)⁻ⁿ- C
- the coupon paid each period = coupon rate × face ÷ payments per year
- r
- the market yield per period = required annual yield ÷ payments per year
- n
- the number of coupon periods = years × payments per year
- Face
- the amount repaid at maturity
When the market yield equals the coupon rate the price equals face (par). A higher required yield discounts the fixed coupons harder, so the price drops below face (a discount); a lower yield pushes it above (a premium).
Worked example
Using the example values — Face Value $1,000.00, Annual Coupon Rate 5%, Market / Required Yield 6%, Years to Maturity 10, Coupon Frequency Semi-Annual — the Bond Calculator returns a Bond Price of $925.61. It also reports Current Yield (5.40%), Premium/Discount (-$74.39), Coupon Payment ($25.00).
Prefer your own numbers? Change any field above and this recomputes instantly.
Key terms
- Coupon rate
- The fixed annual interest a bond pays, as a percentage of face value.
- Required yield / YTM
- The market return used to discount the bond's cash flows.
- Current yield
- Annual coupon ÷ current price — the income return, ignoring any gain or loss to maturity.
- Par / premium / discount
- Priced at, above, or below face value.
Frequently asked questions
Why does the price fall when yields rise?
A bond's coupons are fixed. If newly issued bonds pay more, buyers will only take the old one at a lower price — so its yield rises to match the market. Prices and yields always move in opposite directions.
Current yield vs yield to maturity?
Current yield counts only the coupon against today's price. Yield to maturity also counts the pull toward par at maturity, so for a discount bond it is higher, and for a premium bond lower.
Does this include accrued interest or tax?
No — it is a clean price and ignores tax. Treat it as the theoretical value, not a live dealer quote.