Calculate bond price, yield to maturity (YTM), current yield, and coupon payments based on face value, coupon rate, and market interest rate.
Calculate a bond's price, yield, and expected return with our free bond calculator, useful for evaluating fixed-income investments.
Bond price is calculated as the present value of future coupon payments plus the present value of the face value at maturity, discounted at the bond's yield. Yield to maturity (YTM) reflects the total return if the bond is held until it matures.
Bond prices move inversely to interest rates, when rates rise, existing bond prices fall (since new bonds offer better rates), and vice versa.
Coupon rate is the fixed interest rate stated on the bond; yield reflects the actual return based on the price paid, which can differ from the coupon rate if the bond trades above or below face value.
YTM is the total return anticipated if a bond is held until it matures, accounting for coupon payments and any difference between purchase price and face value.
Government bonds are generally considered low-risk (especially from stable governments), but corporate bonds carry credit risk, the issuer could default on payments.