Bond Price & Yield Calculator
Estimate a bond's price from its face value, coupon rate, coupon frequency, years to maturity, and the market yield to maturity. Built for US and Canada investors evaluating fixed income holdings.
Price a bond
Par value repaid at maturity, from $100 through $1,000,000.
Stated annual rate paid on face value, from 0% through 25%.
Whole number from 1 through 100.
Required annual yield to maturity, from 0% through 25%.
This is a $74.39 discount to face value.
- Current yield
- 5.4018%
- Total coupon income over the term
- $500.00
- Price vs. face value
- -$74.39
How bond price is calculated
A bond's price is the present value of its remaining coupon payments plus the present value of its face value repaid at maturity, both discounted at the market yield to maturity per coupon period. This calculator uses a standard periodic pricing model: it counts whole coupon periods only and does not apply a day-count fraction or accrued-interest adjustment for a specific settlement date. It is a plain periodic model, not a settlement-date accrued-interest calculator.
Price = Σ C / (1 + y/f)t + FaceValue / (1 + y/f)f·n- C
- Coupon payment per period
- y
- Annual market yield to maturity
- f
- Coupon payments per year
- n
- Years to maturity
- t
- Period number, from 1 through f·n
$1,000 face value, 5% coupon, 10 years, 6% market yield
A $1,000 face value bond with a 5% annual coupon rate, paid semi-annually, and 10 years to maturity, priced at a 6% market yield to maturity, has an estimated price of $925.61. Because the market yield (6%) exceeds the coupon rate (5%), the bond trades at a $74.39 discount to face value. Its current yield is 5.4018%, and it pays $500.00 in total coupon income over the 10-year term.
As a second illustration, if the market yield instead equals the coupon rate exactly — 5% in this example — the bond prices at exactly $1,000.00, its face value. This is a general property of bond pricing: when yield equals the coupon rate, price equals face value.
What this calculator assumes
- No default or credit risk is modeled; all coupon and principal payments are assumed to be made in full and on time.
- No accrued interest between coupon dates is calculated — this is a periodic model, not a settlement-date price.
- Coupon frequency is limited to annual, semi-annual, quarterly, or monthly payments.
- The market yield to maturity is assumed constant for every remaining period (a flat yield curve), rather than varying by maturity.
- Money values are rounded to the nearest cent for display.
Bond price FAQ
Why does a bond's price fall when yields rise?
A bond's coupon payments and face value are fixed. When the market yield to maturity rises, those same fixed future payments are discounted more heavily, so their present value — the bond's price — falls. The reverse happens when yields fall: the price rises.
What does "trading at a discount" mean?
A bond trades at a discount when its price is below its face value, which typically happens when the market yield to maturity is higher than the bond's coupon rate. A bond trades at a premium when its price is above face value, typically when the market yield is lower than the coupon rate. When the two rates are equal, the bond prices at par.
Does this include accrued interest?
No. This calculator prices a bond as of a coupon date using whole coupon periods, without a day-count fraction for a specific settlement date between coupons. A real purchase price between coupon dates typically also includes accrued interest owed to the seller.
Sources and review notes
- U.S. Securities and Exchange Commission, Investor.gov — Bonds
- GetSmarterAboutMoney.ca, Ontario Securities Commission — investing education
Methodology last checked Jul 14, 2026. Formula implementation is covered by deterministic unit tests. No financial professional review is claimed yet.