Bond Calculator
Calculate the yield to maturity, current yield, and bond price for a fixed-rate bond.
Published by:
isCalculator Editorial Team
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How to use this tool?
How to Use the Bond Calculator
- Enter the bond details: Fill in the Face Value (e.g., $1,000), Coupon Rate (e.g., 5%), Current Market Price (e.g., $950), and Years to Maturity (e.g., 10).
- Set payment frequency: Choose how often coupon payments are made: Annual, Semi-Annual (default), or Quarterly.
- Calculate: Click the Calculate button. The form validates all inputs (must be positive numbers; coupon rate between 0–100%).
- Read the results: Three key metrics appear:
- Yield to Maturity (YTM): Approximate annual return if held to maturity (shown as a percentage).
- Current Yield: Annual coupon income divided by market price (shown as a percentage).
- Bond Price: Present value of future cash flows using the YTM as discount rate (shown in dollars).
Note: All monetary values are in US dollars ($). The YTM formula is an approximation: (C + (F - P)/n) / ((F + P)/2).
Previous Results
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Frequently Asked Questions
Yield to Maturity is the total return anticipated on a bond if it is held until it matures. It considers the bond's current market price, par value, coupon interest rate, and time to maturity.
Current Yield measures the annual coupon payment relative to the bond's current market price, ignoring capital gains or losses. YTM includes both coupon income and any gain or loss if the bond is held to maturity.
Bonds trade at a discount (below face value) when market interest rates are higher than the coupon rate, and at a premium (above face value) when market rates are lower. The calculator estimates the bond's fair price based on the YTM.
