Skip to content
Finance & Loansbonds

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.

$
%
%
Coupons paid
Price
$934.96

$934.96 for a 1,000 bond, at a discount to face. A required yield of 9% against a 8% coupon is what puts it there.

Each coupon
$40.00
Total coupons over the life
$800.00
Current yield
8.56%
Premium or discount to face
-$65.04
Trading at
at a discount to face
How this is calculated

An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.

Method and background

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 United States 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)

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

yield equal to the coupon prices at par

Face value
$1,000.00
Coupon rate
8%
Years to maturity
10
Required yield
8%
Coupons paid
Twice a year

Price$1,000.00

The definitional case: a bond yields its coupon only at face value

Open this example

a higher required yield prices at a discount

Face value
$1,000.00
Coupon rate
8%
Years to maturity
10
Required yield
10%
Coupons paid
Twice a year

Price$875.38

Computed independently from the annuity plus redemption formula

Open this example

a zero required yield is a plain sum of the payments

Face value
$1,000.00
Coupon rate
8%
Years to maturity
10
Required yield
0%
Coupons paid
Twice a year

Price$1,800.00

boundary: 20 coupons of 40 plus 1000 of face

Open this example

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 · United States · 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.