Bond Price Calculator
Find a bond's price from its yield, or its yield from a price.
The price is above face value because the 5% coupon pays more than the 4.5% the market asks. You get back only $1,000.00 at maturity, so the yield to maturity is below the 4.808% current yield. If yields rose 1 point, duration says the price would fall about 7.9%; repricing every payment gives −7.5%.
Price and yield
Drag the handle along the curveAt a 4.5% yield the clean price is $1,039.91. One point higher it would be $961.93; one point lower, $1,125.65. The curve bends upward, so the straight duration line sits below it on both sides. The bond trades at face value where the yield equals the 5% coupon. Drag the handle or use the slider to try another yield.
Price after a change in yield
| New yield | Price | Change | Estimate |
|---|---|---|---|
| 2.5%−2 points | $1,219.99 | +17.32% | $1,218.86 |
| 3.5%−1 point | $1,125.65 | +8.24% | $1,125.51 |
| 4%−0.5 points | $1,081.76 | +4.02% | $1,081.74 |
| 5%+0.5 points | $1,000.00 | −3.84% | $1,000.02 |
| 5.5%+1 point | $961.93 | −7.5% | $962.06 |
| 6.5%+2 points | $890.95 | −14.32% | $891.97 |
The price column reprices every cash flow; the estimate uses only duration and convexity. A point is 1 percentage point, or 100 basis points.
Shorter or longer bond
If yields rose 1 point, a 2-year bond with the same coupon and yield would move −1.86% instead of −7.5%. Longer bonds swing more.
Every payment left, and its value today
| In years | Cash flow | ||
|---|---|---|---|
| 1 | 0.5 | $25.00 | $24.45 |
| 2 | 1 | $25.00 | $23.91 |
| 3 | 1.5 | $25.00 | $23.39 |
| 4 | 2 | $25.00 | $22.87 |
| 5 | 2.5 | $25.00 | $22.37 |
| 6 | 3 | $25.00 | $21.88 |
The values today add up to the dirty price, $1,039.91.
Risk measures
- Macaulay duration
- 8.04 years
- Modified duration
- 7.86
- Convexity
- 74.55
- DV01, per 0.01 point of yield
- $0.8172
- Coupon each payment
- $25.00
- Payments left
- 20
Before you rely on this result. This is an estimate for planning. Banks, lenders and other providers apply their own rules, fees and rounding, so confirm figures with them before you commit to a financial decision. Sources used on this page.
How it's worked out
A bond pays a fixed coupon on a schedule and repays its face value at maturity. Its price is what all those payments are worth today, each discounted at the yield the market asks:
- is one coupon: the coupon rate times the face value, divided by the payments a year.
- is the face value, and the number of payments left.
- is the yield per period: the yield to maturity divided by the payments a year.
Starting from a price, the tool works backward. It tries yields until the payments are worth exactly that price; the answer is the yield to maturity.
Between coupon dates, the next payment is less than a full period away. The seller has earned part of that coupon, so the buyer pays it as accrued interest. The quoted clean price leaves it out; the dirty price you pay includes it.
Modified duration is how much the price moves, in percent, for a 1 point change in yield. Convexity corrects for the curve bending, which matters for bigger moves.
Worked examples
Maria's 10-year corporate bond
Maria looks at a $1,000.00 bond with a 5% coupon paid twice a year and 10 years left. Similar bonds yield 4.5%, so its price is $1,039.91, a premium: the coupon pays more than the market asks.
Its modified duration is 7.86. If yields rose 1 point, the price would fall to $961.93, a drop of 7.5%. The same bond with 2 years left would fall only 1.86%. Open this example in the tool
Owen's Treasury note at 96.50
Owen's broker quotes a 10-year Treasury note with a 4.25% coupon at 96.50, so a $1,000.00 note costs $965.00. Its yield to maturity is 4.693%.
That is above the 4.404% current yield because Owen also gains $35.00 when the note pays back its face value. Open this example in the tool
Buying between coupons
A 6% bond has 2.25 years left, so a quarter of a year has passed since the last coupon. At a 5% yield the clean price is $1,020.94. The seller earned half of the next $30.00 coupon, so the buyer adds $15.00 of accrued interest and pays $1,035.94. Open this example in the tool
Reading your result
Compare the price with face value. When the yield is above the coupon, the price is below face value, a discount; when it is below, the price is above, a premium. TreasuryDirect explains the same rule for Treasury notes and bonds, which pay interest every six months.
Three yields tell different stories. The coupon rate is fixed. The current yield is a year of coupons over today's price. The yield to maturity also counts the gain or loss as the price moves to face value, so it is the one to compare across bonds.
Duration is your rate risk. FINRA's rule of thumb is that a duration of 10 means about a 10% price change for each 1 point move in rates (FINRA, interest rate changes and duration). Longer bonds and lower coupons have higher duration. The SEC's bulletin on interest rate risk explains why fixed-rate bond prices fall when rates rise.
The risk only turns into a loss if you sell. Held to maturity, a bond that does not default still pays its face value.
Common mistakes
- Treating the coupon as your return. If you pay more than face value, part of each coupon just makes up for the loss at maturity. Use the yield to maturity.
- Forgetting accrued interest. The quote is the clean price, but your trade confirmation shows the dirty price. The gap is the accrued interest, and you get it back with the next coupon.
- Mixing quote styles. Most bonds are quoted per 100 of face value. A quote of 96.50 on a $1,000.00 bond means $965.00, not $96.50.
- Ignoring calls. A callable bond trading at a premium may be repaid early, which cuts your return. Check the yield to call as well.
- Leaning on duration for big moves. For a 2 point move the duration line misses by more; the table shows the exact price beside the estimate.
Questions people ask
Sources
- Fabozzi, F. J., Bond Markets, Analysis, and Strategies, Pearson, chapters on bond pricing, yield measures and duration
- Macaulay, F. R. (1938), Some Theoretical Problems Suggested by the Movements of Interest Rates, Bond Yields and Stock Prices in the United States since 1856, NBER
- TreasuryDirect, Understanding pricing and interest rates (Treasury notes and bonds)
- FINRA, Brush Up on Bonds: Interest Rate Changes and Duration
- SEC Investor Bulletin, Interest rate risk: when interest rates go up, prices of fixed-rate bonds fall
Maintained by Anil ShahUpdated October 28, 2026Checked against 15 reference values