Bond Valuation
 
Enter your bond information below to calculate its current value:
Number of
years
to maturity		 Coupon
rate		 Face
value		 Yield to
maturity
Bond Value

Calculator inputs

There are five variables in a bond valuation problem. Using a financial calculator requires that you type in the four known elements (N, PMT, I, and FV) and solve for the one unknown, the present value (PV).
Number of
cash flows
N		 Amount of
cash flow
PMT		 Yield per
six months
i		 Future
value
FV
Solve for PV

Computational details

The value a bond today is the sum of the present value of the interest payments (valued as an ordinary annuity) and the present value of the face value (discounted as a lump-sum):

PV = [ S CFt/(1 + i)t] + [FV / (1 + i)t]
Present value
of interest		 Periodic
cash flow		 Present value
annuity factor
Present value
of face value		 Face
value		 Discount
factor
 
 
 

Description:

The purpose of this calculator is to provide calculations and details for bond valuation problems. It is assumed that all bonds pay interest semi-annually.

Instructions:

Fill in the spaces that correspond to the number of years, maturity, coupon rate, and yield-to-maturity, followed by clicking on the "Compute" button. The calculator will provide the rest. The coupon rate and yield-to-maturity can be entered as whole numbers or in decimals.