Bond Price & Yield Calculator

A bond is a security through which an investor lends money to the bond's issuer. The face value (par) of the bond is repaid by the issuer on the maturity date. Traditional bonds pay their owners interest via periodic coupons. The coupon rate of interest is paid to the registered investor usually on a semiannual basis though some bonds may pay interest at other frequencies. Bonds are resold in secondary markets.

Like all good bond calculators, our bond calculator will calculate the current price you should pay for a bond given the desired yield. Or if you enter the bond's price, it will calcuate the yield. Additionally, this calculator will also calculate current yield, call price, after tax yield, duration, modified duration and other attributes. See the screen shot for details.

If the coupon rate of a bond is 8%, the current price is $105 and market interest rates are at about 7.5%, is this a good investment? Use this calculator to find out.

New: This calculator has been changed significantly since SolveIT! version 5.x. Most importantly, this calculator now optionally allows the user to enter an Issue Date. This has two advantages. Accrued interest can be calculated if the bond is purchased prior to the first coupon date. Secondly, accrued interest can accurately be calculated if the first coupon period is an irregular length. In addition to the Issue Date, the user can input optional Fees and Concession Points. After Tax and Taxable Equivalent yields are calculated, assuming a trade at Par. In this updated version the calculated details and other attributes can be saved to a file for later review. Finally, the calculator can be used to confirm the accuracy of a trade. The user can enter the number of bonds plus any fees and/or concession points and the total trade amount will be calculated including the accrued interest.

Some bonds pay no coupon interest. To calculate the price and yield for bonds that pay no coupon interest, see the Discount or Zero Coupon Bond calculator for a simpler calculator (or you can enter '0' for "coupon rate" in this calculator).