Bond Calculator

Calculate bond price, yield, and duration.

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Result

Fill in the fields above, then press Calculate.

The Bond Calculator computes the fair price of a bond based on its coupon rate, maturity date, and current market interest rates. It calculates yield metrics, duration (interest rate sensitivity), and shows the complete cash flow schedule. Use this to evaluate bond investments and understand how interest rate changes affect bond prices.

Enter the bond's face value, coupon rate, years to maturity, and the current market interest rate. Select the payment frequency. The calculator shows the bond's fair price, yield metrics, and cash flow schedule. A bond trades at a premium when the coupon rate exceeds the market rate, and at a discount when it is below.

Examples

Premium Bond

A $1,000 bond with 5% coupon and 10 years to maturity when market rates are 4% (semi-annual payments). The bond price is $1,081.11 -- a premium because the coupon exceeds the market rate.

Frequently Asked Questions

Why do bond prices move inversely to interest rates?
When market rates rise, existing bonds with lower coupons become less attractive, so their prices drop. When rates fall, existing bonds with higher coupons become more valuable, pushing prices up.
What is bond duration?
Macaulay Duration measures the weighted average time to receive all cash flows. Modified Duration estimates the percentage price change for a 1% change in yield. Longer duration means more interest rate sensitivity.
What is yield to maturity (YTM)?
YTM is the total return anticipated if the bond is held to maturity. It accounts for coupon payments, the difference between price and par value, and the time to maturity.
Related Calculators
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Investment Calculator
Present Value Calculator
Compound Interest Calculator

Quick Tips

  • •When interest rates rise, existing bond prices fall (and vice versa). If you need cash before maturity, rising rates mean a lower selling price.
  • •Higher-duration bonds are more sensitive to interest rate changes. Long-term bonds fluctuate more than short-term bonds when rates change.
  • •A bond trading at a premium (above par) has a coupon higher than market rates, making it attractive until maturity when you get par value.
  • •Current yield (coupon / price) differs from yield to maturity. YTM accounts for the gain/loss when the bond matures at par.
  • •Diversify your bond portfolio by maturity dates (bond ladder) to reduce interest rate risk and provide regular income.