Bond Price
$925.61Fair value at 6.00% required yieldBond Calculator
Calculate bond price, yield to maturity, current yield, yield to call, duration, after-tax yield, and compare corporate, government, and municipal bonds.
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Bond Calculator
Price bonds, calculate yield to maturity, review duration and rate sensitivity, and compare corporate, government, and municipal bonds.
Bond pricingA bond price is the present value of all coupon payments plus the face value at maturity, discounted at the required market yield.
Discount bond — trading below parRequired yield of 6.00% is above the coupon rate, so fair value is $925.61.
Price as % of Par
92.56%Discount bondAnnual coupon$50.00/yr
Current yield5.4018%
Total coupons$500.00
Total cash received$1,500.00
Macaulay duration7.89 yrs
Modified duration7.6650
DV01 estimate$70.95
After-tax annual coupon$39.00/yr
Bond price decomposition
| Component | Present Value | Share of Price |
|---|---|---|
| PV of coupon payments | $371.94 | 40.18% |
| PV of face value | $553.68 | 59.82% |
| Bond price | $925.61 | 100.00% |
Rate sensitivity scenarios
If market rate rises 1%$857.88 (-$67.74)
If market rate falls 1%$1,000.00 (+$74.39)
If market rate equals coupon rate$1,000.00
Modified duration7.6650 price sensitivity estimate
Coupon cash-flow schedule
| Period | Coupon | Principal | Total Cash Flow | PV of Cash Flow |
|---|---|---|---|---|
| 1 | $25.00 | — | $25.00 | $24.27 |
| 2 | $25.00 | — | $25.00 | $23.56 |
| 3 | $25.00 | — | $25.00 | $22.88 |
| 4 | $25.00 | — | $25.00 | $22.21 |
| 5 | $25.00 | — | $25.00 | $21.57 |
| 6 | $25.00 | — | $25.00 | $20.94 |
| 7 | $25.00 | — | $25.00 | $20.33 |
| 8 | $25.00 | — | $25.00 | $19.74 |
| 9 | $25.00 | — | $25.00 | $19.16 |
| 10 | $25.00 | — | $25.00 | $18.60 |
| 11 | $25.00 | — | $25.00 | $18.06 |
| 12 | $25.00 | — | $25.00 | $17.53 |
| 13 | $25.00 | — | $25.00 | $17.02 |
| 14 | $25.00 | — | $25.00 | $16.53 |
| 15 | $25.00 | — | $25.00 | $16.05 |
| 16 | $25.00 | — | $25.00 | $15.58 |
| 17 | $25.00 | — | $25.00 | $15.13 |
| 18 | $25.00 | — | $25.00 | $14.68 |
| 19 | $25.00 | — | $25.00 | $14.26 |
| 20 | $25.00 | $1,000.00 | $1,025.00 | $567.52 |
Formula
How bond pricing is calculated
A bond price is the present value of its future coupon payments plus the present value of the face value paid at maturity. When market yields rise, fixed-rate bond prices generally fall.
Bond price = PV of coupons + PV of face value
Current yield = annual coupon ÷ market price
Planning note
Use yield, duration, and tax treatment together
Yield to maturity helps compare total return, duration helps estimate interest-rate sensitivity, and after-tax yield helps compare taxable and tax-exempt bonds more fairly.
YTM = discount rate that sets bond PV equal to market price
Tax-equivalent yield = tax-exempt yield ÷ (1 − tax rate)
Use cases
When to use this Bond Calculator
Use it to estimate fair bond value, calculate yield to maturity, compare callable bonds, review duration, and compare taxable or tax-exempt bond options.
Calculate fair bond price from coupon rate, market yield, maturity, and face value
Use the estimate for planning, then review taxes, credit risk, duration, liquidity, fees, call terms, and market conditions before investing.
Estimate yield to maturity from a current market price
Use the estimate for planning, then review taxes, credit risk, duration, liquidity, fees, call terms, and market conditions before investing.
Compare current yield, YTM, yield to call, and yield to worst
Use the estimate for planning, then review taxes, credit risk, duration, liquidity, fees, call terms, and market conditions before investing.
Review Macaulay duration, modified duration, and rate sensitivity
Use the estimate for planning, then review taxes, credit risk, duration, liquidity, fees, call terms, and market conditions before investing.
Compare corporate, government, and municipal bonds after tax
Use the estimate for planning, then review taxes, credit risk, duration, liquidity, fees, call terms, and market conditions before investing.
Estimate annual coupon income, tax-equivalent yield, and inflation-adjusted yield
Use the estimate for planning, then review taxes, credit risk, duration, liquidity, fees, call terms, and market conditions before investing.
Calculator details
Bond Calculator formula, assumptions, and examples
Last updated: July 2026
Formula used
Formula used
Bond Calculator uses the values you enter to estimate totals, rates, percentages, payments, balances, or comparison results for planning.
Assumptions
Assumptions
- The numbers entered are accurate and use the same currency or time period.
- Rates, taxes, fees, deductions, and contribution rules can change.
- Rounding, timing, and real-world provider rules may cause small differences.
Example calculation
Example calculation
Enter a simple bond calculator scenario, review the estimated result, then adjust one input at a time to compare outcomes.
When to use this calculator
When to use this calculator
Calculate fair bond price from coupon rate, market yield, maturity, and face value
Disclaimer
Disclaimer
This calculator is for estimation and educational use only. It does not replace professional financial, tax, legal, mortgage, investment, or accounting advice.
Questions
Frequently Asked Questions
What is a bond calculator?
A bond calculator estimates bond price, yield to maturity, current yield, yield to call, duration, and comparison metrics using face value, coupon rate, market price, maturity, and coupon frequency.
How is a bond price calculated?
A bond price is the present value of future coupon payments plus the present value of the face value received at maturity, discounted at the required market yield.
What is yield to maturity?
Yield to maturity is the annualized return implied by the bond's current price, coupon payments, face value, and time to maturity, assuming the bond is held until maturity.
Why does duration matter?
Duration estimates a bond's sensitivity to interest-rate changes. Longer-duration bonds usually move more when market rates rise or fall.
Can this calculator replace investment advice?
No. Results are estimates only. Actual bond returns can depend on accrued interest, bid-ask spreads, transaction costs, taxes, credit risk, call provisions, reinvestment rates, and market conditions. Review important decisions with a qualified professional.
