Bond Calculator
Calculate bond price, current yield, and yield to maturity (YTM).
Bond price
$1081.76
Current yield
4.62%
YTM
4.02%
Total return
$418.24
Coupon payments
Payment per period
$25.00
every 6 months
Total coupons
$500.00
over bond's lifetime
Price-rate relationship
The bond trades at a premium because its coupon rate (what it pays) is higher than the current market rate. You pay more than face value.
Price over time
Price converges to face value as maturity approaches
Payment schedule
| Period | Year | Payment | Cumulative |
|---|---|---|---|
| 1 | 1 | $25.00 | $25.00 |
| 2 | 1 | $25.00 | $50.00 |
| 3 | 2 | $25.00 | $75.00 |
| 4 | 2 | $25.00 | $100.00 |
| 5 | 3 | $25.00 | $125.00 |
| 6 | 3 | $25.00 | $150.00 |
| 7 | 4 | $25.00 | $175.00 |
| 8 | 4 | $25.00 | $200.00 |
| 9 | 5 | $25.00 | $225.00 |
| 10 | 5 | $25.00 | $250.00 |
| 11 | 6 | $25.00 | $275.00 |
| 12 | 6 | $25.00 | $300.00 |
| 13 | 7 | $25.00 | $325.00 |
| 14 | 7 | $25.00 | $350.00 |
| 15 | 8 | $25.00 | $375.00 |
| 16 | 8 | $25.00 | $400.00 |
| 17 | 9 | $25.00 | $425.00 |
| 18 | 9 | $25.00 | $450.00 |
| 19 | 10 | $25.00 | $475.00 |
| 20 | 10 | $25.00 | $500.00 |
What is a bond?
A bond is a debt instrument where you lend money to an entity (government or corporation) that pays you periodic interest (coupon) and returns the principal at maturity.
Bond pricing
A bond's price is the present value of all its future cash flows (coupons + principal) discounted at the current market rate. Price and rates move inversely.
Types of yield
Current yield = annual coupon / price. YTM includes capital gains/losses if held to maturity. YTM is the most complete measure of expected return.