Bond Calculator
Enter the bond’s face value, coupon, years to maturity and your required yield.
This result is an estimate only. Check with your bank or the relevant authority before making decisions.
How it is calculated
- Coupon per period = face value × coupon rate ÷ payments per year
- Price = present value of the coupons + face value ÷ (1 + y)^n
- y is the required yield per period and n the number of periods
- Current yield = yearly coupon ÷ price
For the time value of a single amount, see the present value calculator.
Worked example
RM1,000 face value, 5% coupon, 10 years, 6% yield, paid twice a year:
- Price = RM925.61, a discount
- Current yield = 5.40%
Why your number may differ
Real bonds settle between coupon dates, so accrued interest and day-count rules change the price. This is a simplified model.
Frequently asked questions
How is a bond priced?
It is the present value of all its coupons plus the face value paid at maturity, discounted at the yield you require.
Why does the price fall when yields rise?
The bond’s fixed coupons are worth less compared with new bonds paying more, so buyers pay less for it.
What are premium and discount?
A bond above its face value trades at a premium, and one below it trades at a discount. At par the price equals face value.