How is a bond price calculated?

Bond price = PV of all coupon payments + PV of face value, discounted at the yield to maturity. When yield > coupon rate, the bond trades at a discount.

What is modified duration?

Modified duration measures the percentage price change for a 1% change in yield. A duration of 5 means the bond falls ~5% in price if yields rise 1%.

Bond Pricing Calculator

Calculate the price of a fixed-rate bond from yield to maturity, coupon rate, face value, and time to maturity. Also computes modified duration, convexity, and DV01 to measure interest rate sensitivity.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How It Works

Each component has a specific meaning:

Yield — The yield recorded for the scenario being assessed.

Note: Interpret the bond price result against the thresholds and context described above.

How to Use

Enter the yield for the scenario you are assessing. Calculate the price of a fixed-rate bond from yield to maturity, coupon rate, face value, and time to maturity. Also computes modified duration, convexity, and DV01 to measure interest rate sensitivity. Use the bond price result to inform your calculation.

Bond Pricing Calculator

How It Works

How to Use

Frequently Asked Questions

How is a bond price calculated?

What is modified duration?