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Bond Price
Premium / Discount
About Bond Price Calculator
What is Bond Price?
The bond price is the present discounted value of the future cash stream generated by the bond. It refers to the sum of the present values of all likely coupon payments plus the present value of the par value at maturity.
Formula
The formula for calculating bond price is:
P = (C / r) * [1 - (1 + r)^(-n)] + F / (1 + r)^n
Variables
- F = Face Value
- C = Coupon Payment per Period
- r = Market Interest Rate per Period
- n = Total Number of Payments
How to Use Bond Price Calculator
- Enter face value
- Enter coupon rate (annual)
- Enter market rate (YTM)
- Enter years to maturity
- Select payment frequency and calculate
Investment Tips
- Bond trades at premium if coupon > market rate
- Bond trades at discount if coupon < market rate
- Bond prices move inversely to interest rates
