Back to Finance Tools
utensil.pro/finance
Bond Calculator
Calculate bond prices, yields, duration, and convexity. Analyze coupon payments and understand premium/discount pricing.
Currency
Bond Parameters
The bond's principal amount at maturity
Annual interest rate as percentage of face value
1 years30 years
Calculate
Required rate of return in the market
Current Price
$1,000.00
Yield to Maturity
5.00%
Annualized return if held to maturity
Current Yield
5.00%
Annual coupon / price
Risk Metrics
Macaulay Duration
7.99
years
Modified Duration
7.79
% price change per 1% yield
Convexity
73.63
curvature measure
Present Value Breakdown
PV of Coupon Payments(39.0%)
$389.73PV of Face Value(61.0%)
$610.27Payment Summary
Coupon Per Period
$25.00
Annual Coupon
$50.00
Total Coupon Payments
$500.00
Total Return at Maturity
$500.00
Coupon Payment Schedule (20 payments)
| Period | Coupon | Present Value | Cumulative |
|---|---|---|---|
| Year 1, Period 1 | $25.00 | $24.39 | $25.00 |
| Year 1, Period 2 | $25.00 | $23.80 | $50.00 |
| Year 2, Period 1 | $25.00 | $23.21 | $75.00 |
| Year 2, Period 2 | $25.00 | $22.65 | $100.00 |
| Year 3, Period 1 | $25.00 | $22.10 | $125.00 |
| Year 3, Period 2 | $25.00 | $21.56 | $150.00 |
| Year 4, Period 1 | $25.00 | $21.03 | $175.00 |
| Year 4, Period 2 | $25.00 | $20.52 | $200.00 |
| Year 5, Period 1 | $25.00 | $20.02 | $225.00 |
| Year 5, Period 2 | $25.00 | $19.53 | $250.00 |
| Year 6, Period 1 | $25.00 | $19.05 | $275.00 |
| Year 6, Period 2 | $25.00 | $18.59 | $300.00 |
| Year 7, Period 1 | $25.00 | $18.14 | $325.00 |
| Year 7, Period 2 | $25.00 | $17.69 | $350.00 |
| Year 8, Period 1 | $25.00 | $17.26 | $375.00 |
| Year 8, Period 2 | $25.00 | $16.84 | $400.00 |
| Year 9, Period 1 | $25.00 | $16.43 | $425.00 |
| Year 9, Period 2 | $25.00 | $16.03 | $450.00 |
| Year 10, Period 1 | $25.00 | $15.64 | $475.00 |
| Year 10, Period 2 | $1,025.00 | $15.26 | $500.00 |
Understanding Bond Pricing
Bond Price Formula
A bond's price equals the present value of all future cash flows:
Price = Sum(C / (1+r)^t) + F / (1+r)^n
- C = Coupon payment per period
- r = Yield per period
- F = Face value (par)
- n = Total periods to maturity
Key Concepts
- Premium Bond: Price greater than face value when coupon rate exceeds market yield
- Discount Bond: Price below face value when coupon rate is less than market yield
- Duration: Measures price sensitivity to interest rate changes - higher duration means more volatility
- Convexity: Second-order price sensitivity - duration alone underestimates price changes for large yield moves