Bond Price Calculator
Price of a bond from its yield, with the current yield, the price as a percentage of par and the effect of a 1 % yield rise.
Results
What this tool does
A bond trades above par when its coupon beats the market yield and below par when it does not, and the two meet exactly at par when coupon equals yield. This assumes annual coupons and a yield quoted annually; for a semi-annual bond, halve both the coupon rate and the yield and double the number of periods.
Formula
P = C (1 − (1+y)^−n) ÷ y + F (1+y)^−n
Variables
| Symbol | Meaning | Unit |
|---|---|---|
fv | Face value | — |
cr | Coupon rate | % |
yy | Yield to maturity | % |
nn | Years | — |
PR | Bond price | — |
CY | Current yield | % |
PC | Percentage | % |
P1 | Bond price | — |
DV | Difference | — |
TC | Total | — |
Worked example
- Face value1000
- Coupon rate5 %
- Yield to maturity6 %
- Years10
- Bond price926.3991
- Current yield5.3972 %
- Percentage92.640 %
- Bond price859.5284
- Difference-66.8708
- Total1500.00
Limitations
- This is an informational calculator, not personalised financial advice. Rates, fees, taxes and contract conditions vary between institutions and countries.
- The result is an estimate based only on the values you type. Real situations often include factors this calculator does not know about.
- The tool works with whatever currency you use for the inputs; it does not convert between currencies.
Frequently asked questions
Why does the price fall when the yield rises?
Because the coupon is fixed. If new bonds pay six percent and yours pays five, nobody will buy yours at face value — the price has to fall until the discount makes up the difference over the remaining life. The last two results show exactly that: what a further one percent rise in yields would do to the price, which is the practical meaning of duration and the reason long bonds move so much more than short ones.