Bond Price From Yield
Calculator
Results
- Bond price
- 926.399129
- Annual coupon payment
- 50
- Current yield (%)
- 5.397241
- Premium or discount to face value
- -73.60087
Investing results
| Bond price | 926.399129 |
| Annual coupon payment | 50 |
| Current yield (%) | 5.397241 |
| Premium or discount to face value | -73.60087 |
formula-map diagram
- Bond price
- 926.399129
- Annual coupon payment
- 50
- Current yield (%)
- 5.397241
- Premium or discount to face value
- -73.60087
Investing relationship
Formula
P = C × [1 − (1 + y)^−n] ÷ y + F ÷ (1 + y)^n= 926.39912948585
Note
This is not investment advice. It is a simplified model: it applies the displayed standard formula to the figures you entered, ignores taxes, fees, currency effects and credit risk, and assumes cash flows arrive exactly as scheduled. Real markets do not behave that way, and past or projected returns do not guarantee future results. Check the assumptions and consult a licensed adviser before acting on any figure.
More in Investing and markets
See all →Frequently asked questions
How is a bond's price calculated from its yield?+
The price is the present value of all future cash flows (periodic coupon payments plus the face value at maturity), each discounted back to today at the given yield rate. As the yield used for discounting rises, the calculated price falls, and vice versa.
Why do bond prices move inversely to yields?+
Since price is the discounted present value of fixed future payments, a higher discount rate (yield) reduces the present value of those fixed payments, while a lower yield increases it — this inverse relationship is fundamental to how bonds are valued.
What does it mean if a calculated bond price is above its face value?+
A price above face value (trading 'at a premium') typically means the bond's coupon rate is higher than the current market yield, so investors are willing to pay more upfront to receive those above-market coupon payments.
How does time to maturity affect sensitivity to yield changes?+
Bonds with longer time to maturity are generally more sensitive to yield changes than short-term bonds, because more future cash flows are affected by the discount rate change and they're discounted over more periods — this sensitivity is more precisely measured by duration.
Does this calculation account for a bond being called early or defaulting?+
No, the basic price-from-yield calculation assumes the bond pays exactly as scheduled through maturity; callable bonds, prepayment risk, or credit/default risk require separate adjustments not captured by this straightforward present-value calculation.