Bond Price Calculator
What a bond is worth at a market yield: the present value of its coupons and face value, split into clean price and accrued interest between coupon dates.
Result
Clean price: $925.61
At the yield you enter, with straight-line accrued interest. Quoted prices use the day count of their market.
- Full price, with accrued interest
- $925.61
- Accrued interest
- $0.00
- Price per 100 of face value
- 92.561
- Current yield
- 5.4018%
- Present value of the coupons
- $371.94
- Present value of the face value
- $553.68
- Note
- A discount: the coupon rate is below the yield, so the bond is worth less than its face value.
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Results are arithmetic on the returns, rates and horizons you enter, not a forecast and not investment, tax or retirement advice. The site supplies no expected return, inflation rate, contribution limit, tax rate or withdrawal rate. Real returns vary from year to year, and fees, taxes and the order of returns all change the outcome. Check anything that matters with a qualified adviser. Read the full disclaimer
How to use the Bond Price Calculator
- Enter the bond's face value, its coupon rate and how often it pays.
- Enter the years left to maturity. A fraction such as 4.75 prices the bond between coupon dates.
- Enter the market yield for a bond like this one, and read the clean price, the full price and the accrued interest.
The formula
coupon = face value × coupon rate ÷ coupons a yearfull price = Σ coupon ÷ (1 + y/m)^t + face value ÷ (1 + y/m)^nclean price = full price − accrued interestEach cash flow is discounted by the market yield y, divided by the m coupons a year, for the number of periods until it is paid. On a coupon date those are 1, 2, 3 and so on; between coupon dates the first is a fraction of a period away and every later one is a whole period further.
Par, premium and discount
When the yield equals the coupon rate the bond is worth exactly its face value on a coupon date. Between coupon dates its clean price here sits a little below face value, because accrued interest is counted in a straight line while the yield compounds. Every point of yield above the coupon rate pulls the price below face value, and the pull is stronger the longer the bond has left to run, because more coupons are fixed at the old rate.
What the diagram shows
The full price as one bar, split into the present value of the coupons still to come and the present value of the face value repaid at maturity.
With your numbers
- 20 coupons of $25.00, discounted at 6% ÷ 2 a period
- Coupons $371.94 + face value $553.68 = full price $925.61
Quick reference
At the yield you enter, with straight-line accrued interest. Quoted prices use the day count of their market.
| Example | Clean price |
|---|---|
| 1,000, 5% twice a year, 10 years at 6% | $925.61 |
| Same at 5%: par | $1,000.00 |
| 6% for 5 years at 4%: a premium | $1,089.83 |
| 2.25% yearly, 15 years at 1.24% | $1,137.47 |
| Zero coupon, 10 years at 5% | $610.27 |
| 4.75 years left, between coupons | $959.10 |
Common questions about the Bond Price Calculator
- Why does the price fall when yields rise?
- The coupons are fixed when the bond is issued. If new bonds pay more, an old bond is only worth buying at a price low enough that its fixed coupons and face value earn the higher yield. A 5% bond with 10 years left is worth less than face value when the market asks 6%, and more when it asks 4%.
- What is the difference between the clean and the full price?
- Interest builds up every day between coupons, and the seller is entitled to the part earned while they held the bond. The buyer pays it on top of the quoted price. The quoted price is the clean price; clean price plus accrued interest is the full, or dirty, price the buyer actually pays.
- Why might my broker's accrued interest differ slightly?
- Markets count days in different ways: many corporate and municipal bonds assume 30-day months and a 360-day year, and Treasuries count actual days. This page accrues interest in a straight line across the period, which is close but not identical to either.
- What is the current yield?
- The annual coupon divided by the price. It ignores the gain or loss as the price moves to face value by maturity, so it overstates the return on a premium bond and understates it on a discount bond. The yield to maturity calculator works out the full return.