Bond Calculator

Calculate bond prices, yields, and returns. Analyze yield to maturity, current yield, and duration for corporate, municipal, and treasury bonds.

Bond Analysis

Fair Price

$1,040

at 4.5% market rate

Yield to Maturity

4.38%

Total return if held

Current Yield4.76%
Duration8.04 years
Annual Income$50
Total Coupons$500

Bond Details

$
%
010

Market & Maturity

$
%
110
130

Bond Pricing

Premium Bond

Trading $40 above par because coupon (5%) > market rate (4.5%)

Cumulative Interest Income

Interest Rate Sensitivity

Market RateBond PricePrice ChangeStatus
3%$1,172+17.2%Premium
4%$1,082+8.2%Premium
5%$1,000+0.0%Premium
6%$926-7.4%Discount
7%$858-14.2%Discount

Duration of 8.04 years means a 1% rate increase causes approximately 8.0% price drop.

Bond Analysis

Fair Price

$1,040

at 4.5% market rate

Yield to Maturity

4.38%

Total return if held

Current Yield4.76%
Duration8.04 years
Annual Income$50
Total Coupons$500

Quick Answer

To calculate bond price, sum the present value of all future coupon payments plus the present value of the face value at maturity. Yield to maturity (YTM) is the total return if held to maturity. Use our free calculator at practicalwebtools.com for instant bond analysis.

Key Facts

  • Bond price = PV of coupons + PV of face value
  • Yield to maturity (YTM) is total return if held to maturity
  • Current yield = Annual coupon / Current price
  • Bond prices move inversely to interest rates
  • Duration measures price sensitivity to rate changes
  • Premium bonds trade above par; discount bonds below

Frequently Asked Questions

YTM is the total return if you hold the bond until maturity, assuming all coupon payments are reinvested at the same rate. It accounts for current price, face value, coupon rate, and time to maturity. YTM is the most comprehensive measure of bond return.
Bond prices move inversely to interest rates. When rates rise, existing bond prices fall (their fixed coupons are less attractive). When rates fall, bond prices rise. Longer-duration bonds are more sensitive to rate changes than shorter ones.
Duration measures a bond's sensitivity to interest rate changes. A duration of 5 years means a 1% rate increase causes roughly a 5% price drop. Longer maturity and lower coupon rates increase duration. Modified duration adjusts for yield.
Coupon rate is the annual interest payment as a percentage of face value (fixed when issued). Current yield is annual coupon divided by current price. YTM includes capital gain/loss if held to maturity. All three can differ significantly.
Municipal bond interest is generally exempt from federal income tax. If issued in your state, often exempt from state/local tax too. However, capital gains are taxable, and some munis may trigger AMT. The tax-equivalent yield can be significantly higher.