Investing & Income
Bond Price Calculator
Find what a bond is worth at today’s market yield, its Macaulay and modified duration, and how far its price moves when interest rates change.
Bond price
$922
92.21% of face value
Current yield
4.34%
Macaulay duration
8.26
years, weighted by cash flow
Modified duration
8.05
% price change per 1-point move in yields
At a 5.00% market yield, this bond is worth $922, a quote of 92.21% of face value.
It trades at a discount because its 4.00% coupon pays less than the 5.00% the market asks for today; the gain back to face value at maturity makes up the difference.
Its modified duration says a 1-point rise in market yields would cut the price by about 8.05%. Repricing it exactly gives -7.68%, to $851: the gap is convexity, which makes prices fall a little less, and rise a little more, than duration alone predicts.
Your numbers
1 = annual, 2 = semiannual, 4 = quarterly, 12 = monthly.
Price at different market yields
The curve bends: each extra point of yield costs the price a little less than the one before. That curvature is convexity.
If market yields move
The same bond, repriced exactly. The longer the bond and the lower its coupon, the bigger the swing.
Yields 1 point lower
$1,000
8.45% higher, at 4.00%
Yields 1 point higher
$851
7.68% lower, at 6.00%
Yields 2 points higher
$787
14.67% lower, at 7.00%
How a bond is priced
Price = Σ C ÷ (1 + y)ᵗ + F ÷ (1 + y)ⁿ
C is the coupon paid each period (annual coupon ÷ payments per year), F the face value, y the market yield per period (market yield ÷ payments per year) and n the number of periods left. Each coupon and the face value are discounted back to today, and the price is their sum.
Macaulay duration = Σ t × PV(cash flowₜ) ÷ Price, with t in years. Modified duration = Macaulay duration ÷ (1 + y). The rate-move cards do not use duration: they price the bond again at the new yield, so they are exact.
Bond prices, yields and duration
A bond’s price is simply what its future payments are worth today. The market sets the discount rate, the yield it demands for that kind of bond, and the price follows. That is why a bond whose coupon is below the market yield sells under face value, and one whose coupon is above it sells over.
Worked example. A 10-year bond with a $1,000 face value and a 4% coupon paid twice a year, priced at a 5% market yield, is worth $922.05. On average its cash flows arrive after a little over 8 years (its Macaulay duration), and its modified duration says a 1-point rise in yields should cost it about 8.05%. Repricing it at 6% gives $851.23, a fall of 7.68%: slightly less, because of convexity.
Time to maturity drives the risk. With the same 4% coupon and 5% yield, a 2-year bond moves only about 1.9% for a 1-point rise in yields, while a 30-year bond loses about 14.5%. Longer bonds lock in their coupon for longer, so a change in rates matters more to them. Lower coupons have the same effect, because more of the value sits in the final repayment.
If you hold a bond to maturity and the issuer pays, price swings along the way do not change what you receive. They matter if you might sell early, and for bond funds, which never hold their bonds to maturity. To find the yield from a price instead, use the bond yield calculator.
Bond Price FAQ
Why do bond prices fall when interest rates rise?+
A bond’s coupon is fixed. When new bonds start paying more, an older bond with a lower coupon is only worth buying at a lower price, low enough that its yield to maturity matches what the market now pays. When rates fall, the opposite happens and its price rises.
What is the difference between Macaulay and modified duration?+
Macaulay duration is the average time until you receive the bond’s cash flows, each weighted by its present value, measured in years. Modified duration converts it into price sensitivity: divide Macaulay duration by (1 + yield per period) and you get the approximate percent change in price for a 1-point change in yields.
Bond duration explained: how much a bond's price moves when rates change
What is convexity?+
Duration treats the link between price and yield as a straight line, but it is a curve. Because of that curvature, a bond’s price falls a little less than duration predicts when yields rise, and rises a little more when they fall. The calculator reprices the bond exactly for each rate move, so convexity is already included in those figures.
Is the price shown the clean or the dirty price?+
It is the price on a coupon date, when no interest has built up since the last payment, so the clean and dirty prices are the same. Between coupon dates, a buyer also pays the seller the accrued interest, which professional bond calculators add using exact settlement dates.
How do I go from a bond’s price to its yield?+
That is the reverse calculation: enter the price you would pay in the bond yield calculator and it solves for the yield to maturity. Pricing a bond at that yield here gives the same price back.
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Educational tool, not advice. This calculator illustrates a standard formula using the numbers you enter. It does not account for your full financial picture, taxes, or local market conditions, and it is not a recommendation to buy, sell, or hold any asset. Speak with a licensed professional before making investment decisions.
See our full disclaimer and how we calculate.
Last reviewed 2026-11-10 by the Yield Analyst team