About the Bond Calculator
A bond is a loan to a company or government that pays regular interest, called coupons, and repays the face value at maturity. Its price moves as market interest rates change. This bond calculator finds the fair price of a bond from the yield investors require, or the yield to maturity (YTM) you would earn if you paid a particular price and held to maturity. It also reports the current yield, the size of each coupon and the Macaulay duration, a measure of how sensitive the price is to rate changes. Coupons can be paid yearly, twice a year, quarterly or monthly.
Updated October 2026
How to use the Bond Calculator
- 1Choose whether to find the price or the yield to maturity.
- 2Enter the face value, the coupon rate and the years to maturity.
- 3Choose how often coupons are paid.
- 4Enter the market yield, or the price you would pay.
- 5Read the price or yield with the current yield and duration.
Premium, par and discount
- If the coupon rate is above the market yield, the bond sells at a premium (above face value).
- If the coupon rate equals the yield, it sells at par.
- If the coupon rate is below the yield, it sells at a discount.
- All bonds are pulled towards face value as maturity approaches.
A quick example
A bond with 1,000 face value, a 5 percent coupon paid twice a year and 10 years to maturity pays 25 every six months. At a 4 percent market yield its price is about 1,081.76; at 5 percent it is exactly 1,000; at 6 percent it is 925.61. Try the yield to maturity mode and enter 925.61 to see the 6 percent come back out.
Related tools
Use the Present Value Calculator for single payments, the Annuity Calculator for the coupon stream, the Compound Interest Calculator and Effective Interest Rate Calculator for compounding, and the IRR Calculator for uneven flows. Bonds carry risks including default and inflation, and this tool is not investment advice.
Features
- Price from yield to maturity
- Yield to maturity from price
- Current yield
- Macaulay duration in years
- Premium or discount to face value
- Annual to monthly coupons
- Runs in your browser
Frequently asked questions
How is a bond priced?
A bond's price is the present value of its coupons plus the present value of the face value paid at maturity, all discounted at the market yield. A 10-year, 5 percent bond with 1,000 face value paying twice a year is worth about 925.61 when the market yield is 6 percent.
Why does a bond's price fall when interest rates rise?
New bonds pay higher coupons, so an older bond with a lower coupon is less attractive and its price drops until its yield matches the market. When rates fall, the reverse happens and its price rises above face value. Longer bonds move more.
What is yield to maturity?
It is the total yearly return you would earn if you bought the bond at its current price, held it until it matures and received all coupons on time, reinvested at the same rate. It combines the coupon income and any gain or loss between the price and face value.
What is the current yield?
It is the yearly coupon divided by the price. A bond paying 50 a year and priced at 925.61 has a current yield of about 5.40 percent. It ignores the gain or loss at maturity, so it is simpler but less complete than yield to maturity.
What does duration tell me?
Macaulay duration is the weighted average time, in years, until you receive the bond's cash flows. Roughly, a bond with a duration of 7 will lose about 7 percent of its value for each 1 percentage point rise in yield. Longer duration means more sensitivity to rates.
Does this include accrued interest, tax and fees?
No. It assumes you buy on a coupon date with no accrued interest, and ignores taxes, fees and the risk of default. Real quoted prices may differ. Use it for learning and comparing, not as a trading tool.