Bond Calculator
Calculate bond yields, coupon payments, and total returns. Get current yield, yield to maturity (YTM), and premium/discount analysis. Perfect for investors and financial analysts.
Amount bond pays at maturity (typically $1,000)
Annual interest rate paid by the bond
Time remaining until bond matures
What you pay to buy the bond today
Complete Bond Analysis
Calculate current yield, YTM, coupon payments, and total returns in one tool.
Premium/Discount Detection
Automatically identifies if bond trades at premium, discount, or par value.
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Frequently Asked Questions
What is current yield on a bond?
Current yield is the annual coupon payment divided by the current market price of the bond, expressed as a percentage. It shows the annual income you receive from the bond based on its current price, not its face value.
What is yield to maturity (YTM)?
Yield to Maturity (YTM) is the total return you can expect if you hold the bond until it matures. It considers the coupon payments, the difference between purchase price and face value, and the time remaining until maturity. YTM is more comprehensive than current yield.
What does it mean when a bond trades at a premium or discount?
A bond trades at a premium when its market price is above face value, and at a discount when below face value. Premium bonds have lower yields than their coupon rate, while discount bonds have higher yields. Bonds trade at par when market price equals face value.
How are bond coupon payments calculated?
Annual coupon payment = Face Value × Coupon Rate. For example, a $1,000 bond with a 5% coupon pays $50 annually. Most bonds pay semi-annually, so you'd receive $25 twice a year. Total coupon payments over the bond's life = Annual Payment × Years to Maturity.
What's the difference between face value and market price?
Face value (or par value) is the amount the bond will pay at maturity, typically $1,000. Market price is what the bond currently costs to buy, which fluctuates based on interest rates and market conditions. You buy at market price but receive face value at maturity.
Is this bond calculator accurate?
Yes! This calculator uses standard bond formulas including an approximation method for YTM that's widely used in finance. For exact YTM, complex iterative calculations are needed, but our approximation is accurate within a small margin for most bonds.