Price a bond from its yield, or solve the yield to maturity from a market price — with current yield, modified duration and the hit from a 1% rate rise.
Typical structures across the market — each sets every field, including the direction.
The terms printed on the bond, plus whichever side you already know.
Prices assume settlement on a coupon date, so no accrued interest is added and the result is a clean price. Real quotes also reflect credit risk, liquidity, call features and day-count conventions. For education and planning, not investment advice.
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A bond is a promise to pay fixed coupons and then return the face value at maturity, so its price is simply what that stream of payments is worth today at the yield you require. This calculator runs the relationship in both directions: enter a yield to get the price, or enter the price you have been quoted to get the yield to maturity. It also reports current yield, modified duration and exactly how much the price would move if market rates rose a percentage point.
A bond’s price is the present value of its cash flows: the coupon stream discounted as an annuity, plus the face value discounted from the redemption date. Because coupons usually arrive semi-annually, the annual yield is divided by the number of payments per year and the years are multiplied by it. Price and yield move in opposite directions, which is the whole of interest-rate risk: when market yields rise, the fixed coupons on an existing bond are worth less, so its price falls until the yield it offers matches the market.
Present value of a coupon bond
You have been offered a bond at a price and want to know the yield it actually delivers if you hold it to maturity, so you can compare it with a CD or a Treasury.
Rates have moved since you bought. Enter today’s market yield to see what your bond is worth now and how far it has drifted from par.
Before extending maturity for extra yield, check the duration. A 20-year bond can lose three times as much as a 5-year bond for the same move in rates.
The worked steps show the coupon per period, the yield per period, the present value of each component, and the duration calculation — the same sequence a finance course or CFA question expects.
Most bond calculators only price from a yield. If you have been quoted a price, the number you actually need is the yield to maturity — the return you lock in by holding to redemption. This solves either side from the other.
The coupon tells you the cash; the yield to maturity tells you the return, because it also counts the gain or loss as the price pulls back to par. A 6.5% coupon bought at a premium can easily yield under 5%.
Modified duration is the standard measure of how much a bond moves per percentage point of yield. You get the duration and the repriced value, so the risk is a dollar figure and not an abstraction.
Duration is a straight-line estimate of a curved relationship. This calculator reports both the duration estimate and the true repriced value, so you can see the gap rather than trust the approximation.
Yield to maturity is the single discount rate that makes the present value of a bond’s remaining payments equal its current price. It is the annualized return you earn if you buy at that price, hold to maturity, and every payment arrives as promised. Unlike the coupon rate, it accounts for whether you paid above or below face value.
The coupon rate is fixed against face value; the yield to maturity is measured against what you actually paid. Buy below par and you collect the coupons plus a gain when the bond redeems at face value, so the yield exceeds the coupon. Buy above par and that premium is lost at redemption, pulling the yield below the coupon.
A bond’s coupons are fixed. If new bonds start paying more, nobody will pay full price for the older, lower-paying one, so its price falls until the yield it offers matches what is available elsewhere. The longer the maturity, the more payments are affected, and the further the price falls.
Modified duration estimates the percentage change in a bond’s price for a one percentage point change in yield. A modified duration of 7.7 means roughly a 7.7% price fall if yields rise by 1%. It is a linear approximation, so it slightly overstates losses and understates gains — the difference is convexity.
A bond trades at a premium when its price is above face value, which happens when its coupon is higher than the current market yield. It trades at a discount when its price is below face value, because its coupon is below the market yield. At par, the coupon and the market yield are equal.
A zero-coupon bond pays no interest, so its price is just the face value discounted back over its life: F ÷ (1 + r)^N. Enter a coupon rate of zero here and the coupon term drops out. A zero-coupon bond’s Macaulay duration always equals its time to maturity, because there is only one cash flow.
No. This calculator assumes settlement on a coupon date, so it returns the clean price. When you buy between coupon dates you also pay the seller the interest accrued since the last payment, and the total is called the dirty price. For a bond settling mid-period, add the accrued interest to the price shown here.
No. US savings bonds (Series EE and I) are not traded and are not priced this way — their value accrues on a schedule set by the Treasury, and you look it up on TreasuryDirect. This calculator prices marketable coupon bonds: Treasuries, corporates and municipals.