Bond Yield Calculator
Bond Details
Yield Results
Risk Metrics
Price vs. Yield Relationship
This chart illustrates the inverse relationship between a bond's yield and its price. The dot represents your current bond setup.
Bond Pricing Table
Estimated bond prices if market yield (YTM) changes.
| Market Yield (YTM) | Bond Price | Change in Price |
|---|
Frequently Asked Questions
How do you use a bond yield calculator?
To use a bond yield calculator, you need to input the bond's current market price, its face value (usually $1,000), the annual coupon rate, the number of years until maturity, and the coupon payment frequency. The calculator will then determine the current yield and the yield to maturity (YTM).
What is the difference between current yield and yield to maturity?
Current yield only looks at the annual coupon payment divided by the current market price, ignoring the bond's face value at maturity. A yield to maturity calculator accounts for all future cash flows plus the difference between the current price and the face value received at maturity, offering a more comprehensive measure of return.
How does a bond price calculator work?
A bond price calculator uses the discounted cash flow method. It takes all future cash flows (regular coupon payments and the final face value repayment) and discounts them back to present value using a target yield rate. The sum of these present values equals the fair bond price.
Why do bond prices go down when yields go up?
There is an inverse relationship between bond prices and yields. When interest rates in the market rise, newly issued bonds pay higher coupons. To make an older, lower-paying bond attractive to investors, its price must drop until its overall yield matches the new higher market rates.
What does a yield to maturity calculator tell you?
A yield to maturity calculator reveals the total annualized return an investor will earn if they buy the bond at the current price, hold it until maturity, and reinvest all coupon payments at that same yield rate.