About this tool
Bond Price & Yield Calculator is a free, in-browser tool that values a fixed-coupon bond two ways: given a yield it computes the fair price, and given a market price it solves the yield to maturity. Enter the face (par) value, annual coupon rate, years to maturity and the number of coupons per year — everything is computed locally and nothing is uploaded.
The price is the present value of every cash flow: Price = Σ C/(1+y/m)^t for t = 1…n·m, plus F/(1+y/m)^(n·m), where C = F·couponRate/100/m is the coupon per period, m is the coupons per year, and y is the annual yield as a decimal. Price falls as yield rises, so the yield to maturity is found by bisection — repeatedly halving the yield interval until price(y) equals the price you entered. Current yield is the annual coupon divided by the price, times 100.
Use it to check whether a bond trades at a discount or premium, to compare a quoted price against a target yield, or to see the total nominal coupon income over the bond's life. Semiannual (m = 2) is the common convention for most government and corporate bonds.
Frequently asked questions
How does it find the yield to maturity from a price?
A bond's price decreases monotonically as its yield rises, so the tool uses bisection: it brackets the yield between 0% and an upper bound, then repeatedly halves the interval until the model price matches the market price you entered, to within a tiny tolerance.
What is the difference between current yield and yield to maturity?
Current yield is just the annual coupon divided by the price — it ignores any gain or loss if you hold to maturity. Yield to maturity is the single discount rate that makes the present value of all coupons plus the face value equal the price, so it captures that pull-to-par as well.
Why does the price fall below face value when the yield is above the coupon rate?
If the market demands a higher return than the coupon pays, investors will only buy the bond for less than par, so it trades at a discount. When the yield is below the coupon rate the bond trades at a premium, and when they are equal it prices at par.
What does coupons per year mean and is my data uploaded?
It is how many times a year interest is paid: 2 for the typical semiannual bond, 1 for annual, 4 for quarterly. Every figure is calculated in your browser and nothing is ever sent to a server.
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