Bond price and yield calculator
A fixed-coupon bond pays a regular coupon then repays its face value. Find its yield from the price paid, or its price for a wanted yield.
Result
5.66%Yield to maturity per year
- Current yield
- 5.26%
- Coupon each payment
- 25.00
- Coupons left
- 20
- Total coupons
- 500.00
- Macaulay duration (years)
- 7.93
- Modified duration
- 7.71
Inputs
- Face value
- 1000
- Coupon rate per year
- 5
- Time to maturity
- 10
- Coupons paid
- Every 6 months
- I am looking for
- The yield
- Price paid
- 950
How it is calculated
Conventions: valued on a coupon date (no accrued interest), yield is a nominal yearly rate compounded at the coupon rhythm.
Result
Yield to maturity per year
- Current yield
- 5.26%
- Coupon each payment
- 25.00
- Coupons left
- 20
How it is calculated
- Conventions: valued on a coupon date (no accrued interest), yield is a nominal yearly rate compounded at the coupon rhythm.
- Price = discounted coupons and face value: Σ C ÷ (1 + y)^k + face ÷ (1 + y)^n, with y = yield ÷ coupons per year.
- The yield is found by a numeric search so that this price equals the price paid.
- Current yield = one year of coupons ÷ price. Duration = payment dates weighted by present value; modified = duration ÷ (1 + y).
Example
A 1,000 bond at 5%, semi-annual coupons, 10 years, bought at 950: yield to maturity 5.66%, current yield 5.26%, 20 coupons of 25.00 (500.00 in total), duration 7.93 years and modified duration 7.71.
Good to know
- Plain fixed-coupon bond, no default, no call and no accrued interest.
- Market conventions (day counts, clean price) can give a slightly different result.
- Before tax and fees.
Frequently asked questions
What is this tool used for?
A fixed-coupon bond pays a regular coupon then repays its face value. Find its yield from the price paid, or its price for a wanted yield.
How is the result calculated?
Conventions: valued on a coupon date (no accrued interest), yield is a nominal yearly rate compounded at the coupon rhythm.
What should I check before using the result?
Plain fixed-coupon bond, no default, no call and no accrued interest.