Bond price & yield calculator
Price a bond from its coupon and the market yield, and see how sensitive that price is to rate changes.
Method: Discounted cash flows, Macaulay and modified durationReviewed Oct 2026
Your numbers
$
%
%
yrs
Results
Bond price
$925.61
7.4% discount to face
Current yield
5.40%
Annual coupon ÷ price
Modified duration
7.67 yrs
≈ 7.7% price move per 1% yield
PV of coupons $372 (40%)PV of face value $554 (60%)
Formula
Price = C · (1 − (1 + y)⁻ⁿ) ÷ y + F · (1 + y)⁻ⁿ
With your numbers
Price = $25.00 · (1 − (1 + 0.03000)^−20) ÷ 0.03000 + $1,000 · (1 + 0.03000)^−20 = $925.61
In plain EnglishThis bond pays $25.00 2 times a year and $1,000 at maturity. Discounting those payments at a 6.00% market yield gives a price of $925.61, a discount because the coupon is below the market yield. If yields rise by one point, expect the price to fall by about 7.7%.
- 1Coupon per period C = F × coupon ÷ freq$25.00
- 2Yield per period y = YTM ÷ freq0.03000
- 3Periods n = years × freq20
- 4Present value of coupons$371.94
- 5Present value of face$553.68
- 6Macaulay duration7.89 yrs
- 7Modified duration = Macaulay ÷ (1 + y)7.67 yrs
YearCash flowPresent valueCumulative PV
1$50.00$47.84$47.84
2$50.00$45.09$92.93
3$50.00$42.50$135.43
4$50.00$40.06$175.49
5$50.00$37.76$213.26
6$50.00$35.60$248.85
7$50.00$33.55$282.40
8$50.00$31.63$314.03
9$50.00$29.81$343.84
10$1,050.00$581.77$925.61
Why does the price fall when yields rise?
The coupon is fixed. When new bonds pay more, an old bond has to sell at a lower price to offer the same yield.
What is modified duration?
An estimate of the percentage price change for a one percentage point move in yield. A duration of 7 means about a 7% price drop if yields rise by 1%.