Bond Price Formulas Calculator

<-- Face
<-- Coupon %
<-- Term
<-- Yield %
<-- Redeem
       

How does the Bond Price Formulas Calculator work?

Given a face value, coupon percent, yield percent, term, and redemption value, this calculates the price of a bond using the four price formulas for bonds
1) Basic
2) Premium/Discount
3) Base
4) Makeham
This calculator has 5 inputs.

What 4 formulas are used for the Bond Price Formulas Calculator?

  1. Basic Formula price = Face * Coupon % * Present Value Coupons + R/Discount Factor
  2. Premium/Discount price = R + (Face * Coupon % - R * yield) * Present Value of Coupons
  3. Base price = (Face * Coupon % / yield) + (R - (Face * Coupon % / yield))/(1 + yield)term
  4. Makeham price = (R / ((1+yield)term) + ((Face * Coupon%)/(Yield * R)) * (R - R/((1+yield)term))

For more math formulas, check out our Formula Dossier

What 7 concepts are covered in the Bond Price Formulas Calculator?

bond
a type of security under which the issuer owes the holder a debt, and is obliged depending on the terms to repay the principal of the bond at the maturity date as well as interest over a specified amount of time.
bond price formulas
discount
the amount by which the market price of a bond is lower than its principal amount due at maturity
makehams formula
an actuarial formula expressing the present value of a payment stream in terms of its repayments instead of the payments themselves
premium
a bond which market value is greater than its face value
present value
the value in the present of a sum of money, in contrast to some future value it will have when it has been invested at compound interest.
PV = FV/(1 + i)n
where I is the interest rate per period, PV = Present Value, and FV = Future Value
price
the amount of money expected, required, or given in payment for something



Bond Price Formulas Calculator Video