Bond Price Calculator — Price from Yield to Maturity
Who this is for: For students pricing bonds in corporate finance or fixed-income coursework — and for anyone who wants to see, line by line, how a 6% market yield turns a 5% coupon into a $973.27 price.
Not the right tool for: Between-coupon-date pricing — prices here are clean prices on a coupon date, with no accrued interest · Floating-rate or inflation-linked bonds — fixed coupons only
Face value, coupon, years, yield → the bond's price, with the premium/discount verdict and current yield.
Quick answer: Bond price = PV of all coupons + PV of face, discounted at the market yield. A $1,000-face, 5% annual-coupon, 3-year bond prices at $973.27 when the yield is 6% (discount) and $1,027.75 at a 4% yield (premium). Yield up → price down, always.
Mode
Bond price
$973.27
Discount · face $1,000
Current yield
5.14%
annual coupon ÷ price
Coupon per period
$50.00
3 periods total
Discount: trades below face because the market yield beats the coupon The breakdown below shows every payment discounted at the market yield — the sum is the price. Want the reverse direction? The bond yield calculator solves YTM from a price.
Period
Payment
Present value
1
$50.00
$47.17
2
$50.00
$44.50
3
$1,050.00 (coupon + face)
$881.60
Sum
$973.27
Clean price on a coupon date — no accrued interest. YTM assumes coupons reinvested at the YTM and the bond held to maturity. Educational reference, not investment advice.
Core facts
Formula
Price = Σ coupon/(1+y)ᵗ + face/(1+y)^n
Discount example
3y, 5% coupon @ 6% yield → $973.27
Premium example
3y, 5% coupon @ 4% yield → $1,027.75
Price basis
Clean price on a coupon date (no accrued interest)
Compiled
October 2026
How a bond gets its price
A bond's price is the present value of everything it will pay: every coupon discounted at the market yield, plus the face value at maturity. Price the 3-year, 5% annual-coupon, $1,000-face bond at a 6% yield and you get $973.27: $47.17 for the first coupon, $44.50 for the second, $44.50 plus $881.60 for the last coupon and principal. The market yields 6% but the bond pays 5%, so buyers only show up at a discount — and the discount is precisely the mechanism that lifts their return to 6%. Flip the yield to 4% and the same bond prices at $1,027.75, a premium. The rule in one line: price and yield move in opposite directions, and the further from the coupon rate, the further from face. This page prices clean (no accrued interest), on a coupon date, with per-period rates for semiannual and quarterly frequencies.
Common uses
Pricing a bond for homework given face, coupon, maturity, and market yield
Seeing the discount/premium mechanics with a full cash-flow breakdown
Checking a quoted price against the yield you believe the market charges
Semiannual-coupon problems (the US convention) without worksheet fiddling
Where these numbers come from
All results are computed in your browser from the standard closed-form formulas (and a numerical root-finder where no closed form exists — rates, IRR, YTM). Formulas follow the ordinary-annuity (END) convention used by the BA II Plus and HP 12C. Educational reference only — not investment, tax, or accounting advice.
Frequently Asked Questions
Why is the price below (or above) face value?
The coupon is fixed; the market yield isn't. Yield above coupon → price below face (discount); yield below coupon → price above face (premium). At a 6% yield, the 5% coupon bond prices at $973.27; at a 4% yield, $1,027.75. The spread does the compensating.
Is this the clean price or the dirty price?
Clean — it assumes you're pricing on a coupon date, so there's no accrued interest to add. Between coupon dates, quoted prices are clean and the buyer pays clean plus accrued; this calculator (like textbook problems and the BA II Plus bond worksheet's standard outputs) stays on the clean side.
How do semiannual coupons change the math?
Periods double, each coupon halves, and the per-period yield is the annual divided by two: a 10-year, 8% semiannual bond at a 7% yield has 20 periods of $40 coupons discounted at 3.5% → price $1,071.06. Same present-value logic, smaller periods.
Does price include commissions or accrued interest?
No — it's the pure present-value price. Brokerage fees, markups, and taxes live outside this formula, and accrued interest only exists between coupon dates, which this tool treats as today being a coupon date.
Why does longer maturity mean bigger price swings?
More distant cash flows get discounted harder, so a yield change reweights them more. A 30-year bond moves far more for the same yield change than a 3-year bond — duration is the precise measure of that sensitivity, and it's the next chapter after this calculator.