Find a bond’s price from its face value, coupon rate, years to maturity and market yield.
The method behind this calculator
A bond’s price is the present value of its coupon payments plus its face value at maturity, discounted at the market yield. Enter the terms and the calculator returns the price and whether it trades at a premium or discount.
When the market yield exceeds the coupon, the bond trades below par.
How to use it
- Enter face value and coupon rate.
- Enter years to maturity and market yield.
- Choose the coupon frequency to get the price.
The formula
price = Σ coupon ÷ (1+i)ᵗ + face ÷ (1+i)ⁿ
where i is the yield per period
Worked example
Worked through, a coupons / year of Semiannual produces a bond price of $925.61. Underneath, Coupon payment comes out at $25 and Premium / discount at Discount $74.39. Change any field and every figure updates as you type.
Common questions
Why does a bond trade at a discount?
When market yields rise above the coupon rate, the fixed coupons are worth less, so the price falls below face value.
What is yield to maturity?
The total return if you hold the bond to maturity, used as the discount rate here.
How does maturity affect price sensitivity?
Longer maturities are more sensitive to yield changes, so their prices move more. This is an estimate, not advice.