Bond Price Calculator
Calculate the fair market price of a bond using its face value, coupon rate, yield to maturity, and years to maturity. Determine whether a bond trades at a premium or discount to its par value.
Bond Price Calculator
FAQ
What determines a bond's price?
A bond's price is determined by the present value of all its future cash flows (coupon payments plus face value at maturity), discounted at the yield to maturity. When yields fall, bond prices rise, and vice versa.
What is the difference between a premium and discount bond?
A premium bond trades above its face value because its coupon rate is higher than the current market yield. A discount bond trades below face value because its coupon rate is lower than the current yield.
How do coupon payment frequencies affect bond price?
Most bonds pay semi-annual coupons (2 per year). Higher payment frequency slightly increases the bond's price because investors receive cash flows sooner, which have a higher present value.