Bond Price Calculator
The price of a bond from its required yield. Price and yield move opposite ways, and a bond only trades at face value when the two rates are equal.
Also called: bond valuation calculator, clean price calculator.
₹935 for a 1,000 bond, at a discount to face. A required yield of 9% against a 8% coupon is what puts it there.
An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.
This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.
How this is calculated
A bond is a stream of coupons plus the face value at the end, each discounted at the yield the market demands. If that yield is above the coupon, buyers will only take the bond at less than face; if it is below, they will pay more. The whole of bond arithmetic is that one seesaw.
price = coupon * annuity factor + face value discounted to today- C
- Coupon per period (currency)
- F
- Face value (currency)
- y
- Yield per period (decimal)
- n
- Number of periods (periods)
Method and limits
What it assumes
- A clean price, so accrued interest between coupon dates is not added.
- Coupons are reinvested at the yield, which is the convention rather than a fact.
What it deliberately does not model
- Credit risk, embedded calls and tax treatment all move a real price and none are modelled.
- Day-count conventions differ by market and are not applied.
Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator
Frequently asked questions
- Why does the price fall when yields rise?
- Because the coupon is fixed. If new bonds pay more, the only way an old one can compete is to cost less, and it has to fall far enough that its fixed payments deliver the new rate.