Bond Calculator
Calculate bond price from yield, yield to maturity from price, or duration as a measure of interest rate sensitivity.
How to use the Bond Calculator
- Enter your inputs into the Bond Calculator above.
- Results update instantly as you type — no submit button needed.
- Adjust any value to see how the result changes in real time.
The bond price formula
Price = Σ [C / (1 + y)^t] + F / (1 + y)^n
C is the coupon payment per period, y is the yield per period, t indexes each period and F is the face value. Bond price is the sum of present values of all future cash flows discounted at the yield.
Worked example
A 10-year bond with $1,000 face value paying 4% annual coupon ($40/year) priced at a 5% yield: Price ≈ $922.78. As yields rise, prices fall — a 1% yield increase drops this bond to about $851.
Frequently asked questions
What is yield to maturity?
The total annualized return you'll get holding the bond to maturity, accounting for current price, coupon payments and the return to face value at maturity.
How does duration measure risk?
Duration estimates the percentage price change for a 1% yield change. A bond with 7-year duration loses about 7% if yields rise 1%. Longer bonds have higher duration and more interest-rate risk.
Why do bond prices fall when rates rise?
Existing bonds at lower coupons become less attractive than newly issued bonds at higher rates, so the market reprices old bonds down until their yields match the new rate environment.