Small business calculator
Bond Price Calculator
Estimate a bond’s price using face value, coupon rate, coupon frequency, years to maturity, and yield to maturity (YTM). The price is the present value of coupons plus the present value of face value.
Inputs
All cash flows are discounted using yield per coupon period.
Results
Bond price is the present value of coupon payments and the redemption (face) value.
Example
A $1,000 face value bond with a 5% annual coupon paid semiannually has $25 coupons each period. Discounting those coupons at the YTM gives the bond’s price.
How it works
Coupon per period = face value × coupon rate ÷ frequency. Price = \(\sum_{t=1}^{n} C/(1+r)^t + F/(1+r)^n\), where \(r\) is YTM per period and \(n\) is total periods.
Related tools
See Finance calculators for discount-rate contexts, Return on investment, or back to the Small Business calculator list.