# Bond Price Calculator

URL: https://speedycalculator.com/calculators/finance/bond-price/
Last updated: 2026-10-25

> The bond price calculator values a bond as the present value of its coupons and face value at the market yield (YTM), and shows whether it trades at a premium, at par or at a discount.

## Inputs

- Face value
- Annual coupon rate (%)
- Coupon frequency
- Years to maturity
- Yield to maturity (YTM) (%)

## Results

- Coupon per period
- Annual coupon
- Bond price
- Trades at
- Price as % of face value

## Formula

```
Price = C × [1 − (1 + y/f)^−N] ÷ (y/f) + F ÷ (1 + y/f)^N
C = face × coupon rate ÷ f; N = years × f
```

## Explanation

When market yields rise above a bond's coupon rate, its price falls below face value (a discount); when yields fall, its price rises above face value (a premium).

### How to use the Bond Price Calculator

- **Face value**
- **Annual coupon rate**
- **Coupon frequency**
- **Years to maturity**
- **Yield to maturity (YTM)**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the face value, coupon rate, coupon frequency, years to maturity and the yield to maturity.

### Tips

- Check whether rates are quoted annually, semi-annually or per period.
- Bond prices and yields move in opposite directions – a higher yield means a lower price.
- Use the bond's clean price (without accrued interest) for yield calculations.
- Credit ratios are most useful when tracked over several years.

### Common mistakes to avoid

- Confusing the coupon rate with the yield.
- Using the face value instead of the market price.
- Forgetting that callable bonds may be redeemed before maturity.

### Inputs explained

FieldWhat to enterFace valueAmount in your currencyAnnual coupon rateIn %Coupon frequencyChoose one: Annually, Semi-annually, Quarterly, MonthlyYears to maturityA numberYield to maturity (YTM)In %

### What each result means

- **Coupon per period** = [Face value]×[Annual coupon rate]÷100÷[Coupon frequency]
- **Annual coupon** = [Face value]×[Annual coupon rate]÷100
- **Bond price** = bondpx([Face value], [Annual coupon rate]÷100, [Coupon frequency], [Years to maturity], [Yield to maturity (YTM)]÷100)
- **Price as % of face value** = [Bond price]÷[Face value]×100

### Example values

How the main result changes when **Face value** changes and everything else stays at the example values above:

Face valueBond price500462.81750694.211,000925.611,2501,157.021,5001,388.422,0001,851.23

## Worked example

Inputs — Face value: $1,000; Annual coupon rate: 5 %; Coupon frequency: Semi-annually; Years to maturity: 10; Yield to maturity (YTM): 6 %.

Results — Coupon per period = $25.00; Annual coupon = $50.00; **Bond price = $925.61**; Trades at = A discount (below face value); Price as % of face value = 92.56 %.

## FAQ

**How is a bond priced?**
As the present value of all its coupons and the face value, discounted at the yield.

**Why do bond prices fall when rates rise?**
Existing coupons become less attractive than new, higher-yielding bonds.

**What is a premium bond?**
One priced above face value because its coupon exceeds the market yield.

**What formula does the Bond Price Calculator use?**
Price = C × [1 − (1 + y/f)^−N] ÷ (y/f) + F ÷ (1 + y/f)^N.