Bond Calculator
Calculate bond prices, yields, duration and other bond characteristics. Compare different bonds and analyze fixed income investments.
Bond Characteristics
| Bond Price | $0.00 |
|---|---|
| Current Yield | 0% |
| Yield to Maturity | 0% |
| Duration | 0 years |
| Modified Duration | 0 years |
| Convexity | 0 |
| Total Coupon Payments | $0.00 |
| Total Return | $0.00 |
Bond Pricing Results
| Bond Price | $0.00 |
|---|---|
| Accrued Interest | $0.00 |
| Dirty Price | $0.00 |
| Current Yield | 0% |
| Yield to Maturity | 0% |
| Duration | 0 years |
| Modified Duration | 0 years |
| Convexity | 0 |
About Bond Calculator
A bond is a fixed-income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Owners of bonds are debt holders, or creditors, of the issuer.
How to Calculate Bond Prices and Yields
Bond prices and yields are inversely related. When bond prices go up, yields go down, and vice versa. The basic bond pricing formula is:
Bond Price = (C × (1 - (1 + r)^-n) / r) + (F / (1 + r)^n)
Where:
- C = Coupon payment per period
- r = Yield per period
- n = Number of periods until maturity
- F = Face value of the bond
Key Bond Characteristics
Current Yield: Annual coupon payment divided by the current bond price.
Yield to Maturity (YTM): The total return anticipated on a bond if held until it matures.
Duration: A measure of a bond's sensitivity to interest rate changes.
Convexity: A measure of the curvature in the relationship between bond prices and yields.
Why Bond Calculations Matter
Understanding bond prices and yields helps investors assess the risk and return characteristics of fixed income investments. Bond calculators simplify complex calculations and help investors make informed decisions about bond investments.