Bond Calculator - Calculator See


Bond Calculator

Calculate bond price, Yield to Maturity (YTM), current yield, and coupon payments for fixed-income corporate and treasury bonds.

Calculator Inputs

$
Redemption par value at maturity.
$
Current trading price.
%
Stated coupon interest rate.
yrs
Years until principal repayment.

Calculated Results

Yield to Maturity (YTM)
5.74% Annualized YTM
Current Yield 5.26%
Annual Coupon Payment $50.00 / yr
Bond Pricing Status Discount Bond (< $1,000 Par)
Values calculate live as you adjust inputs.

About Bond Calculator

Computes the internal rate of return (YTM) of a bond purchased at market price and held to maturity.

What is Bond Calculator?

Computes the internal rate of return (YTM) of a bond purchased at market price and held to maturity.

How to Use This Calculator

  1. Enter par face value (typically $1,000).
  2. Enter current market purchase price.
  3. Enter annual coupon percentage.
  4. View Yield to Maturity and current yield.

The Mathematical Formula & Variables

Approx YTM = [Coupon + (Face - Price)/n] / [(Face + Price)/2]

Step-by-Step Worked Example

Scenario: $1,000 par bond bought for $950 with 5% coupon and 10 years to maturity.

  1. Annual coupon C = $50.
  2. Capital gain per year = ($1,000 - $950) / 10 = $5.
  3. Average bond value = ($1,000 + $950) / 2 = $975.
  4. YTM ≈ (50 + 5) / 975 = 55 / 975 = 5.64% (Exact = 5.67%).

Result: 5.67% YTM

Frequently Asked Questions

What happens to bond prices when market interest rates rise?

Bond prices and interest rates move in opposite directions. When market rates rise, existing bonds drop in price below par (trading at a discount).