What is this calculator?
Value a fixed-coupon bond by discounting coupon and principal payments.
What can you use it for?
Use this tool to compare a financial scenario using the assumptions you control. Value a fixed-coupon bond by discounting coupon and principal payments.
How to use it
- Enter face value.
- Enter annual coupon rate (%).
- Enter annual yield (%).
- Enter years to maturity.
- Enter coupon payments per year.
- Select Calculate (or Generate for random tools).
- Read the answer and any additional results below the form. Check the units and the limits of the method.
Formula and method
The coupon and yield are converted to the selected payment frequency. Every coupon and the final principal are discounted.
Worked example
Face value: 1000, Annual coupon rate (%): 5, Annual yield (%): 6, Years to maturity: 10, Coupon payments per year: 2. The result is 925.6126257 (estimated bond price).
Assumptions and limits
Whole coupon periods; accrued interest and default risk excluded.
Frequently asked questions
What inputs does the Bond Calculator need?
Use face value, annual coupon rate (%), annual yield (%), years to maturity, coupon payments per year. Read the answer and any additional results below the form. Check the units and the limits of the method.
What assumptions apply to the Bond Calculator?
Whole coupon periods; accrued interest and default risk excluded.