Bond Calculator
Classic fixed-rate bond: present value of coupon stream plus principal at maturity (clean theoretical price).
Price from yield (YTM)
Bond price (clean):
As % of par:
Yield from market price
Solve for approximate annual YTM when you know the bond’s trading price.
Approximate annual YTM:
Why bond prices move opposite to yields
A bond's price is the present value of its future coupon payments plus its face value at maturity. When market yields rise, those future cash flows are discounted more heavily, so the price falls — and vice versa. That's why bond prices and yields always move in opposite directions, and why the "yield from market price" tool searches for the discount rate that makes the present value equal to the price you paid.
Frequently asked questions
Why does the bond trade above or below face value? A bond trades above par ("premium") when its coupon rate exceeds the current market yield, and below par ("discount") when the coupon rate is lower than the market yield — investors adjust the price they'll pay so the effective return matches prevailing rates.
What does "semiannual" payment frequency mean for the math? Most bonds (especially U.S. Treasury and corporate bonds) pay coupons twice a year, so the calculator splits the annual coupon rate and discount rate in half and doubles the number of periods to match.
Is this the same as the bond's current yield? No — current yield is just annual coupon ÷ current price, a simpler (and less complete) measure. Yield to maturity (YTM) accounts for the time value of all remaining cash flows, including any gain or loss if the bond was bought at a premium or discount.