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Bond Calculator

Price a bond from its coupon, maturity and yield, with current yield, duration and every cash flow shown.

By Nitin Raturi · Last reviewed

Your worksheet

How to use the Bond Calculator

Price a bond from its yield and see how sensitive the price is to rates.

  1. Enter the face value and the coupon rate.
  2. Enter the yield to maturity you require.
  3. Enter the years left and how often coupons are paid.
  4. Read the price, current yield and duration; open the cash-flow table for each payment.

Good to know

  • Tap the ⓘ next to any field for a short guide to it.
  • The price assumes today is a coupon date.

The price is every coupon and the final repayment, discounted at the yield you require. Valued on a coupon date.

Face value

The amount the issuer repays at maturity. Coupons are a percentage of it.

How to fill it in

  • Enter ₹100 to ₹100 crore. Many Indian bonds have a face value of ₹1,000 or ₹100.

Coupon rate

The yearly interest the bond pays, as a percentage of its face value.

How to fill it in

  • Enter 0% to 30% a year. Use 0% for a zero-coupon bond.

Example

A 7.5% coupon on ₹1,000.00 paid twice a year is ₹37.50 each half-year.

Yield to maturity

The yearly return you require if you hold the bond to maturity. It sets the price.

How to fill it in

  • Enter 0% to 30% a year.
  • When the yield is above the coupon rate, the price is below face value, and the other way round.

Example

At 8% the default bond prices at ₹966.02.

Keep in mind: A yield assumes every coupon and the face value are paid on time. Default risk is not modelled.

Years to maturity

Whole years left until the face value is repaid.

How to fill it in

  • Enter 1 to 50 years.
  • Longer bonds move more in price when yields change.

Coupon frequency

How often the coupon is paid in a year.

How to fill it in

  • Choose yearly, half-yearly, quarterly or monthly.
  • Indian government bonds usually pay half-yearly.

Estimated bond price

₹966.02

At a 8% yield, the bond prices at a discount of ₹33.98, because the coupon rate is below the yield. It pays ₹37.50 every half-year and ₹1,000.00 at maturity.

Current yield
7.76%
Macaulay duration
7.15 years
Modified duration
6.88 years
Total coupons
₹750.00

Modified duration estimates the price change for a small yield move: about 6.88% for each 1 percentage point, in the opposite direction.

Priced on a coupon date (no accrued interest), with the yearly yield divided by 2 for each half-year and compounded per half-year. Excludes taxes, fees and default risk.

Full schedule and CSV

Display rounds only for reading. CSV preserves full precision.

Each cash flow and its present value at the yield
Period (half-year)Cash flow (INR)Present value (INR)
1₹37.50₹36.06
2₹37.50₹34.67
3₹37.50₹33.34
4₹37.50₹32.06
5₹37.50₹30.82
6₹37.50₹29.64
7₹37.50₹28.50
8₹37.50₹27.40
9₹37.50₹26.35
10₹37.50₹25.33
11₹37.50₹24.36
12₹37.50₹23.42
13₹37.50₹22.52
14₹37.50₹21.66
15₹37.50₹20.82
16₹37.50₹20.02
17₹37.50₹19.25
18₹37.50₹18.51
19₹37.50₹17.80
20₹1,037.50₹473.50

ChangelogHow we test this calculatorEmbed this calculator

How this calculator works

  1. Step 1List every payment20 coupons₹37.50 each half-year, then ₹1,000.00 at the end.
  2. Step 2Discount at the yield8%Each payment is worth less the further away it is.
  3. Step 3Add them up₹966.02The total is the price that gives you that yield.

A bond’s price is the value today of the coupons and the final repayment, using the yield you require as the discount rate.

Worked example

A 10-year bond paying 7.5% is worth ₹966.02 when you require 8%.

The default bond
Price
P = C × (1 − (1 + k)^−N) ÷ k + F × (1 + k)^−N
  • Fface value ₹1,000.00
  • Ccoupon each half-year ₹37.50
  • kyield per half-year 4%
  • Nhalf-years to maturity 20
  1. Total coupons received₹750.00
  2. Discount to face value₹33.98
  3. Current yield7.76%
  4. Price₹966.02

The price is below face value because the coupon is lower than the yield you require. The gap is made up when the full face value is repaid.

Reading the result

When yields rise, bond prices fall; when yields fall, prices rise.

  • 6% yield₹1,111.58
  • 7% yield₹1,035.53
  • 7.5% yield₹1,000.00
  • 8% yield₹966.02
  • 9% yield₹902.44
  • 10% yield₹844.22
Price of the default bond at different yields
  • 2 years to maturity1.82 yearsSmall price change when yields move.
  • 30 years to maturity11.42 yearsMuch larger price change for the same yield move.

Modified duration is roughly the percentage price change for a 1-point change in yield. Longer bonds have higher duration, so their prices move more.

A bond's yield is its internal rate of return. Other cash flows can be measured the same way.

For dated cash flows of any kind, use the XIRR calculator; for evenly spaced ones, the IRR calculator. To discount a single future sum, try the present value calculator.

A bank deposit pays a fixed rate instead; the FD calculator shows its maturity value.

Common mistakes

  • Mistake: Treating the coupon rate as your return.

    Instead: Your return depends on the price you pay: that is the yield.

  • Mistake: Comparing a quoted market price with this price between coupon dates.

    Instead: Market prices may exclude accrued interest; this tool values on a coupon date.

  • Mistake: Ignoring the risk that payments are late or missed.

    Instead: Check the issuer’s credit rating; this tool assumes every payment is made.

This calculator values a bond under your assumptions. It does not quote market prices or recommend any bond.

Read how we test our calculators, or browse more money calculators.

Frequently asked questions

How is a bond’s price calculated?

Each coupon and the final face value is discounted at the yield per period, then the results are added. That total is the price that gives you the required yield if you hold to maturity.

Why is the price below face value?

When the yield you require is higher than the coupon rate, the bond must cost less than its face value. The opposite gives a price above face value.

What is the difference between current yield and yield to maturity?

Current yield is the yearly coupon divided by the price. Yield to maturity also counts the gain or loss between the price and the face value repaid at maturity.

What does modified duration tell me?

It estimates how much the price changes for a small change in yield. A modified duration of 6.9 means about a 6.9% price fall if yields rise by 1 percentage point.

Does it handle accrued interest?

No. The bond is valued on a coupon date, so there is no accrued interest. Prices between coupon dates differ.

Sources and methodology

The formulas are standard time-value-of-money results. We check every figure against golden values worked out independently, by closed form and by month-by-month simulation; see the methodology.

Written and maintained by Nitin Raturi, a software engineer (about the author). Last reviewed 27 Oct 2026; next review due by . Found an error? Tell us.

Changelog

  • : Initial release. Demand metrics remain unverified.

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