Bond Price Calculator
Find a bond's price from its yield and coupon.
1 = annual, 2 = semi-annual
Results update as you type.
How it works
A bond's fair price is the present value of the income it will pay, and this calculator computes it from the bond's terms and the prevailing market yield. You enter the face value, the coupon rate, the market yield, the years to maturity, and the number of payments per year, and it returns the bond price. The calculation discounts every future cash flow back to today: the periodic coupon payments plus the face value returned at maturity, each divided by one plus the per-period yield raised to the number of periods away. The central insight is the inverse relationship between price and yield. When the market yield equals the coupon rate, the bond is worth exactly its face value. When the market yield is higher than the coupon rate, the bond pays less than investors could get elsewhere, so it trades at a discount below face value. When the market yield is lower, the bond's above-market coupons make it worth a premium above face value. This is why bond prices fall when interest rates rise and vice versa. Investors use bond pricing to value holdings, compare bonds, and understand interest-rate risk. For semi-annual bonds, common in many markets, set payments per year to two so the coupon and yield are handled per period correctly. Enter the bond's terms and market yield to compute its price.
Price = Σ coupon / (1+r)ᵗ + face / (1+r)ⁿ
A bond's price is the present value of its future cash flows: each coupon payment and the face value at maturity, discounted at the market yield per period. When the market yield equals the coupon rate the bond prices at face value; a higher yield prices it at a discount, and a lower yield at a premium.
Source:Fixed income valuation
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter face value, coupon rate, market yield and years to maturity.
- 2
Adjust the options
Adjust payments per year if they apply — sensible defaults are already set.
- 3
Read your result
Bond price updates instantly as you type — no button to press.
Frequently asked questions
How is a bond's price calculated?
A bond's price is the present value of its future cash flows: each coupon payment and the face value at maturity, discounted at the market yield per period. The calculator sums these discounted values. Enter the face value, coupon rate, market yield, years, and payment frequency to get the price.
Why do bond prices move opposite to interest rates?
When market yields rise above a bond's fixed coupon, the bond's payments look less attractive, so its price falls to a discount that raises its effective yield to match the market. When yields fall, the bond's higher coupon becomes valuable, pushing its price to a premium. This inverse relationship is fundamental to bonds.
When does a bond trade at par, a discount, or a premium?
A bond trades at par, its face value, when the market yield equals the coupon rate. It trades at a discount, below face value, when the market yield exceeds the coupon rate, and at a premium, above face value, when the market yield is below the coupon rate. The gap widens with longer maturities.
What is the coupon rate versus the yield?
The coupon rate is the fixed interest the bond pays on its face value each year, set when issued. The market yield is the return investors currently demand, which changes with interest rates. The bond's price adjusts so that its yield to buyers matches the market yield despite the fixed coupon.
How do I handle semi-annual bonds?
Many bonds pay interest twice a year. Set payments per year to two, and the calculator splits the annual coupon into two payments and discounts at half the annual yield per period, over twice as many periods. This matches how most corporate and government bonds actually pay and are priced.