Finance & Investment · Bonds & Fixed Income
Bond Price & Yield (YTM) Calculator
Price a fixed-coupon bond from the market yield, or find its yield to maturity (YTM) from the price you'd pay — with current yield, premium or discount, and every coupon and the redemption in a cash-flow table.
Your inputs
Quick start — try a typical case
₹ 1 thousand
Amount repaid at maturity (₹100 for G-Secs, ₹1,000 or more for corporate bonds).
Your result Live
Yield to Maturity (YTM)
7.792%
Buying at ₹980 for a ₹1,000 bond paying 7.5% — trading at a discount
- Current Yield (coupon ÷ price)
- 7.653%
- Coupon per Payment
- ₹37.50 × 20 payments
- Total Cash You Receive
- ₹1,750
- Price
- ₹980
- Gain or Loss at Maturity vs Price
- ₹20
Cash flows
20 rowsHow this is calculated
Price = Σₖ (C ÷ f) ÷ (1 + y/f)ᵏ + F ÷ (1 + y/f)ⁿ; YTM is the y that makes this equal the price paid
- C, F
- Annual coupon and face value
- f, n
- Coupons a year and number of coupon periods to maturity
- y
- Yield to maturity (annual, compounded f times a year — the market convention)
A bond's price and yield move in opposite directions. When market yields are above the coupon, the bond sells below face value (a discount) so the buyer still earns the market yield; when yields are lower, it sells at a premium. YTM is the single rate that discounts every coupon and the redemption back to the price — the bond's annual return if held to maturity with coupons reinvested at that rate.
Assumptions & sources
- Valued on a coupon date: clean price = dirty price (no accrued interest).
- Fixed coupons, no default, held to maturity; coupons reinvested at the YTM.
- Taxes and transaction costs aren't included.
- 1CFA Program Curriculum — Quantitative Methods: The Time Value of Money — CFA Institute
- 2Investments (Bodie, Kane & Marcus), chapters on returns, compounding and the time value of money — McGraw-Hill
- 3Government securities — investor FAQs — Reserve Bank of India
Calculator ID FIN-BOND-PRICE-001 · version 1.0.0
Common questions
Why does a bond's price fall when yields rise?
Its coupons are fixed. If new bonds pay more, an existing bond only attracts buyers at a lower price, which lifts its yield to the market level.
YTM or current yield?
Current yield is just the coupon ÷ price. YTM also counts the gain or loss to face value at maturity and the timing of every payment, so it's the better measure of return.
What price should I enter?
The clean price (excluding accrued interest) per bond. Between coupon dates the market quotes clean prices; this calculator assumes a coupon date.