Bond
Calculate bond prices, yields, and returns
Calculators on this site provide estimates for general informational purposes only. They are not financial, investment, tax, or legal advice. Consult a qualified professional before making any decision.
How to use Bond
- 1Enter the bond face value, coupon rate, years to maturity, and current market price.
- 2Add the payment frequency and any call or tax assumptions if applicable.
- 3Review the yield to maturity, current yield, and estimated total return.
How bond yields work
Approx YTM = (annual coupon + (face - price) / years) / ((face + price) / 2)The coupon rate tells you the annual interest payment as a percentage of face value.
Yield to maturity reflects the total return if you hold the bond until it matures, including price changes and reinvested coupons.
When market interest rates rise, existing bond prices usually fall, and vice versa.
Frequently asked questions
What is the difference between coupon and yield?
Coupon is the fixed interest payment; yield is the effective return based on the price you actually paid.
Why does the bond price move opposite to interest rates?
New bonds pay the market rate, so an older bond with a lower coupon must trade at a discount to compete.
Is this calculator suitable for zero-coupon bonds?
It works best for coupon bonds; zero-coupon bonds need a different reinvestment assumption.
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