Bond Calculator
Bond Parameters
Bond Calculation Results
| Yield to Maturity (YTM) | — |
|---|---|
| Calculated Price | — |
| Current Yield | — |
| Total Coupon Payments | — |
How to Use This Bond Calculator
Bond quotes flip between price and yield depending who you're talking to—retail sees price, portfolio managers think YTM. This calculator switches modes so you can answer either question from the same inputs: face value, annual coupon, maturity, and coupon frequency.
- Choose calculation mode. Select Yield (YTM) to solve from market price, or Price to solve from target yield.
- Enter face value and annual coupon. Coupon is total dollars per year (e.g., $50 on a $1,000 bond paying 5%).
- Set years to maturity and coupon frequency. Most corporates pay semiannually; treasuries and munis vary.
- Enter price or yield (mode-dependent). YTM mode needs market price; price mode needs your required yield.
- Press Calculate. Review YTM or price, current yield, and total coupon cash over life.
Compare fixed-income alternatives with the CD Calculator, or discount individual cash flows using the Present Value Calculator.
Bond Formulas and Practical Applications
A bond is a stack of coupon checks plus a final principal repayment, all discounted back at the market yield. When yields rise after you buy, your bond's fixed coupons look less attractive—so price drops until YTM matches the market.
Bond price from yield
Price = Σ [ C / (1 + y/f)t ] + F / (1 + y/f)N
A $1,000 face, 5% coupon ($50/year) semiannual bond maturing in 10 years at 6% YTM prices below par—roughly $926—because investors demand more than the 5% coupon pays.
Current yield vs YTM
Current Yield = Annual Coupon / Price
Current yield is a quick income snapshot; YTM also bakes in gain or loss if you hold to maturity at today's price.
Frequently Asked Questions
What is the difference between YTM and price modes?
Yield (YTM) mode calculates yield to maturity from face value, coupon, maturity, and market price. Price mode calculates fair price from a target yield.
How do I enter the annual coupon?
Enter total coupon dollars paid per year, not the coupon rate percentage. A $1,000 face bond at 5% pays $50 annual coupon.
Why does bond price move opposite to yield?
When market yields rise, existing fixed coupons are less attractive, so price falls to raise effective yield. When yields fall, price rises.
What is current yield?
Current yield is annual coupon divided by market price. It ignores time value of principal repayment at maturity, unlike YTM.
Does this include accrued interest or commissions?
No. Results are clean price math only. Actual trades may add accrued interest since last coupon and brokerage fees.