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
| Field | What to enter |
|---|---|
| Face value | Amount in your currency |
| Annual coupon rate | In % |
| Coupon frequency | Choose one: Annually, Semi-annually, Quarterly, Monthly |
| Years to maturity | A number |
| Yield 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 value | Bond price |
|---|---|
| 500 | 462.81 |
| 750 | 694.21 |
| 1,000 | 925.61 |
| 1,250 | 1,157.02 |
| 1,500 | 1,388.42 |
| 2,000 | 1,851.23 |
Formula
Price = C × [1 − (1 + y/f)^−N] ÷ (y/f) + F ÷ (1 + y/f)^NC = face × coupon rate ÷ f; N = years × fWorked 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 %.
Frequently asked questions
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.