Bond Price & Yield Calculator
Compute a bond's fair price by discounting its coupons and face value at the yield-to-maturity.
Inputs
How it works
Price = Σ(coupon/(1+y)^t) for t = 1…n + Face/(1+y)^n, where y = YTM per period and n = total periods. Semi-annual bonds divide coupon and YTM by 2 and double the period count.
Frequently asked questions
Why does price fall when YTM rises?
Bond cash flows are fixed. If new bonds yield more, this bond's fixed coupons look worse — so its price drops until its yield matches the market.
Premium vs. discount bond?
Coupon > YTM → trades above face (premium). Coupon < YTM → below face (discount). Coupon = YTM → at par.
What's the difference between coupon yield, current yield, and YTM?
Coupon yield = coupon/face. Current yield = coupon/price. YTM = the discount rate that makes all cash flows equal the price — the true annualized return if held to maturity.
Are US Treasuries semi-annual?
Yes — nearly all US Treasury notes and corporate bonds pay coupons twice a year.
Does this account for taxes?
No — US Treasury coupons are federal-taxable but state-tax-free; municipal bonds are typically federal-tax-free. Adjust the YTM you use accordingly.