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Enter your values, then click Calculate result.How this calculator helps
This bond price calculator values a supplied plain fixed-coupon schedule at a coupon date. US savings I Bonds use a different rate and redemption system and cannot be valued with this conventional fixed-coupon formula. No market quote, credit spread, issuer risk or Treasury redemption record is loaded.
How to use it
- 1
Enter face value and the annual coupon rate from the security terms.
- 2
Supply the nominal annual yield and matching yearly payment frequency.
- 3
Use remaining years that correspond to a whole number of coupon periods and click Calculate result.
- 4
Read price, coupon cash and current yield separately; use a settlement-aware model for between-coupon trades.
Formula and methodology
Price = Σ coupon/(1+y/f)^t + face/(1+y/f)^N. Coupon = face × annual coupon rate/f. N = years × coupons per year and must be an integer.
The calculator applies the displayed arithmetic to the values entered on this device. It does not silently load a local tax rate, currency conversion or commercial assumption.
Worked calculation example
A face value of 1,000, annual coupon rate of 5%, nominal annual yield of 5%, five remaining years and two coupons per year gives a modeled price of 1,000. Each half-year payment is 25 and there are ten payments. Raising the nominal annual yield to 6% reduces the price to approximately 957.349. The coupon remains 25; it is the discount rate used to value the unchanged cash flows that changed.
How to interpret your result
The price is the present value of the entered schedule under the supplied discount assumption. Price per one hundred face value makes schedules with different denominations easier to compare, but it does not make their credit risk identical. Premium or discount is measured against face. Neither that difference nor current yield establishes an investment recommendation or guaranteed outcome.
For different inputs or formulas, use Npv Calculator; Time Value Of Money Calculator; Effective Interest Rate Calculator.
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Scenario comparison
| Scenario | What it shows |
|---|---|
| Par case | matching nominal coupon and yield gives face value. |
| Higher yield | unchanged coupons discount to a lower price. |
| Zero yield | price becomes undiscounted coupons plus face repayment. |
Common mistakes to avoid
- Entering effective annual yield as nominal without conversion.
- Applying the formula to a savings I Bond.
- Treating coupon-date price as a settlement-ready clean price.
Use an annual two-period bond and independently discount the first coupon, second coupon and final face repayment. Compare a zero-yield schedule with its undiscounted total. Check the par case with equal coupon and yield at the same frequency. Then increase yield while preserving cash flows and confirm that modeled price falls.
Authoritative reference. Method reference checked for this worksheet. The calculation and examples are independently implemented; read the specific scope and units above.What can affect the result?
Face, coupon and yield
Face value is the principal repaid at modeled maturity. Coupon rate determines contractual interest payments, while yield is the rate used to discount those payments. They are not interchangeable. The entered yield is nominal annual yield divided by the number of yearly payments. An effective annual yield requires conversion before use. The calculator does not solve yield from a quoted price; it prices a schedule from a supplied yield assumption.
Coupon-date valuation
The first payment is modeled one complete coupon period after valuation. Therefore the result is a coupon-date present value with no accrued-interest adjustment. A trade between coupon dates needs settlement timing, accrued interest and a relevant day-count convention. Clean and dirty price are not inferred here. Remaining years times frequency must be a whole positive count so the final principal repayment falls on the modeled coupon schedule.
Premium and discount
When yield exceeds coupon rate under the same frequency basis, modeled price falls below face value. When yield is below coupon rate, price rises above face. At equal rates, a standard schedule prices at par. These relationships describe present-value arithmetic, not whether a security is a good purchase. Credit risk, call options, liquidity and tax treatment can matter even when the schedule is identical. A supplied yield is not a promised realized return.
Current yield is a different measure
Current yield divides annual coupon cash by the modeled price. It does not include the gain or loss between purchase price and face value, and it does not discount repayment timing. Consequently current yield generally differs from yield to maturity. A zero-coupon bond has current yield zero even though the modeled price can be below face. Read the labels rather than assuming every percentage is the same return measure.
Supported schedule and exclusions
Choose annual, semiannual, quarterly or monthly payments with up to 1,200 remaining periods. Coupon and yield are nonnegative in this bounded model. Callable, floating-rate, inflation-linked, amortizing and defaulted securities require different cash-flow assumptions. I Bonds and Series EE savings bonds are not ordinary coupon schedules. Currency values remain neutral, and no exchange rate, withholding tax, brokerage fee or local bond convention is supplied automatically.
Sensitivity and independent checks
Hold all cash flows fixed and compare prices under several discount rates. More distant fixed payments generally respond differently from near-term payments. The page does not report duration or convexity, so do not attach those labels to the price comparison. Verify a small schedule by discounting every coupon separately, adding the final face repayment and comparing the total. Actual transactions should use issuer documents and market settlement information.
Privacy and browser processing
Values entered on this page are processed in the current browser session. SolvePilot does not require an account and does not receive the values entered into the calculator. Refreshing or closing the page clears the working values unless the browser itself restores a previous session. Avoid entering identifying or account information because the calculation needs summary values only.
Accuracy and verification
Accuracy depends first on input quality. Confirm definitions, scales, dates and source information before entering a value. Keep an independent record of any result used for planning because this page does not create an official statement or retain a calculation history.
Limits of this estimate
Use only the disclosed input domains and model. Entering effective annual yield as nominal without conversion. Review the method-specific boundaries above and the linked source before interpreting a result. Calculations use browser floating-point arithmetic; displayed digits are not a measure of real-world certainty. Your entries stay on this device and are not submitted to a calculation server.
Sources and review information
Frequently asked questions
Does it price I Bonds?＋
No. US savings I Bonds have different rate and redemption rules; this fixed-coupon method does not apply.
Is yield the coupon rate?＋
No. Coupon determines cash payments. Yield discounts those payments to a present value.
Can the modeled price exceed face?＋
Yes. A coupon rate above the supplied yield produces a premium under the stated schedule.
Does it include accrued interest?＋
No. The valuation starts at a coupon date and excludes settlement-day adjustments.
Can I use any currency?＋
Yes, use one consistent currency for face and all displayed money amounts. No currency conversion occurs.