Bond Calculator
Enter the bond basics and see the yields it offers.
Bond Details
Current Yield
Reading bond yields
A bond bought below face value (a discount) earns extra return at maturity, so its YTM is higher than its coupon rate. A bond bought above face value (a premium) loses money at maturity, lowering the YTM. Current yield only reflects income, not the price change.
Bond Calculator FAQ
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Bond Calculator — coupon, current yield and YTM
Bonds pay fixed coupons and return the face value at maturity. This calculator computes your annual coupon payment, current yield, yield to maturity (YTM) and total coupon income — the core metrics for any bond purchase or comparison.
Bond basics every investor should know
Face value (par) is what the issuer repays at maturity. The coupon is the annual interest paid (coupon rate × face value).
If you buy below face value (discount), your YTM exceeds the coupon rate; buy above (premium) and YTM falls below the coupon.
Current yield = annual coupon ÷ market price. YTM additionally accounts for the gain/loss between price and face value over remaining life.
Bond prices and interest rates
Bond prices and interest rates move inversely: when rates rise, existing bonds with lower coupons fall in price; when rates fall, prices rise.
Duration measures price sensitivity — longer-term bonds swing more with rate changes.
Government bonds are considered risk-free in most countries; corporate bonds pay higher coupons but carry default risk (credit spread).
How to use this calculator
- Enter the bond's face value.
- Input the annual coupon rate (%).
- Set the number of years to maturity.
- Enter the price you pay (market price).
- Read coupon payment, current yield, YTM and total coupons.
Pro tips
- Compare YTM across bonds — it's the true return, not the coupon.
- Hold to maturity to avoid price volatility losses.
- Prefer short-duration bonds when rates are expected to rise.