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Free Bond Calculator — Bond Price, YTM & Coupon Payments

Calculate the fair price of a bond from its yield to maturity, or solve for YTM given the current market price. Includes coupon payment schedule and current yield.

This free bond calculator handles the full range of fixed-income calculations: bond price from YTM, yield to maturity from price, coupon payment amounts, current yield, and premium or discount to par. Works for Treasury bonds, corporate bonds, and municipal bonds. No sign-up required.

What Is a Bond Calculator?

A bond calculatorcomputes the fair price of a bond given its yield to maturity (YTM), or conversely solves for the YTM given the bond's current market price. Bonds pay periodic coupon payments — fixed interest — plus return the full face value at maturity.

Bond pricing is driven by the inverse relationship between price and yield: when market interest rates rise, existing bond prices fall, and when rates fall, existing bonds become more valuable. A bond trading above its face value is at a premium; below face value is at a discount; at face value is trading at par.

Use this calculator alongside our investment calculator to compare bond returns against equity alternatives and build a balanced portfolio strategy.

How to Use This Bond Calculator

  1. 1

    Enter Face Value

    Enter the bond's face value (also called par value or principal). Most US Treasury and corporate bonds have a face value of $1,000. This is the amount the issuer repays at maturity.

  2. 2

    Enter the Coupon Rate

    Enter the annual coupon rate as a percentage. This is the stated interest rate printed on the bond. A $1,000 bond with a 5% coupon pays $50/year ($25 every 6 months for semi-annual bonds).

  3. 3

    Enter Years to Maturity

    Enter the number of years until the bond matures and the face value is repaid. Longer maturities mean more coupon payments but also greater sensitivity to interest rate changes (higher duration).

  4. 4

    Enter YTM or Current Price

    Enter either the desired yield to maturity to calculate the bond's fair price, or enter the current market price to calculate the YTM. The calculator solves for the unknown in either direction.

Bond Pricing Formula

Bond Price = Σ [C / (1+r)^t] + [F / (1+r)^n]
  • C = Periodic coupon payment (annual coupon / compounding frequency)
  • F = Face value (par value, typically $1,000)
  • r = Yield per period (YTM / compounding frequency)
  • n = Total number of periods to maturity
  • t = Period number (1 through n)

Example: $1,000 face, 5% coupon, 10 years, 4% YTM (semi-annual): C = $25, r = 2%, n = 20 → Bond Price = Σ[$25/(1.02)^t] + [$1,000/(1.02)^20] = $1,081.76 (premium bond)

When coupon rate equals YTM, the bond prices exactly at par ($1,000). When coupon > YTM, the bond trades at a premium. When coupon < YTM, the bond trades at a discount.

Bond Calculator Examples

Three scenarios illustrating par, premium, and discount bond pricing.

Par Bond: Treasury at 4.5% Coupon / 4.5% YTM

A $1,000 face value Treasury bond with a 4.5% coupon, 10-year maturity, and a market YTM of 4.5% prices at exactly $1,000 — trading at par. When the coupon rate equals the yield, there is no premium or discount; the bond is priced at face value. Annual coupon income: $45.

Premium Bond: 6% Coupon / 4% YTM

A $1,000 face bond with a 6% coupon, 10 years to maturity, and a market YTM of 4% prices at $1,162 — a premium bond. Investors pay above par because the 6% coupon exceeds the 4% market yield, making this bond's income stream more valuable than newly issued alternatives.

Discount Bond: 3% Coupon / 5% YTM

A $1,000 face bond with a 3% coupon, 10 years to maturity, and a market YTM of 5% prices at $845 — a discount bond. Because the 3% coupon falls short of the 5% market rate, investors only buy this bond at a discount — the capital gain from $845 to $1,000 at maturity makes up the difference in yield.

Frequently Asked Questions

What is Yield to Maturity (YTM)?
Yield to Maturity (YTM) is the total annualized return an investor earns if they buy a bond today and hold it until it matures, assuming all coupon payments are reinvested at the same rate. YTM accounts for the bond's current price, face value, coupon rate, and time to maturity. It is the most comprehensive single measure of a bond's value and is used to compare bonds with different prices, maturities, and coupons.
Why do bond prices move opposite to interest rates?
Bond prices and interest rates move in opposite directions because of the fixed nature of coupon payments. If you hold a bond paying 4% and market rates rise to 6%, new bonds offer better income — so your 4% bond becomes less attractive and its price falls until the yield matches the market. Conversely, if market rates fall to 2%, your 4% coupon is more valuable and the bond price rises. This inverse relationship is the fundamental rule of fixed-income investing.
What is the difference between coupon rate and yield?
The coupon rate is the fixed annual interest payment stated on the bond as a percentage of face value — it never changes. The yield (or current yield) is the coupon payment divided by the bond's current market price, which changes constantly as the price fluctuates. If a $1,000 bond with a 5% coupon trades at $900, its current yield is $50/$900 = 5.56%. YTM also factors in the capital gain or loss between current price and face value at maturity.
What are US Treasury bond rates in 2024?
As of 2024, US Treasury yields range from approximately 5.0–5.3% for short-term T-bills (3–6 months), 4.5–4.8% for 2-year notes, 4.2–4.5% for 10-year notes, and 4.3–4.6% for 30-year bonds. The yield curve has been inverted, meaning short-term rates exceed long-term rates — an unusual condition that historically precedes recessions. Treasury bonds are backed by the full faith and credit of the US government and are considered the global risk-free benchmark.
What is bond duration and interest rate risk?
Duration measures a bond's sensitivity to interest rate changes. A bond with a duration of 7 years will fall approximately 7% in price for every 1% rise in interest rates. Longer-maturity bonds have higher duration and therefore more interest rate risk. Short-term bonds (1–2 years) have low duration and are much less sensitive to rate changes. Investors seeking to reduce interest rate risk should favor shorter maturities or use a bond ladder strategy.
What is a callable bond?
A callable bond gives the issuer the right to redeem the bond before its maturity date, usually at par or a slight premium. Issuers call bonds when interest rates fall — they can refinance at lower rates, just like a homeowner refinancing a mortgage. For investors, this creates reinvestment risk: your bond gets called right when rates are low and you must reinvest at worse terms. Callable bonds typically offer higher yields than comparable non-callable bonds to compensate for this risk.

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