What this calculator shows you
- Yield Calculation
- Current yield and YTM
- Price Analysis
- Calculate fair value
- Income Projection
- Expected interest payments
- Comparison
- Compare different bonds
Bond Basics
Bonds are loans to governments or corporations. You receive periodic interest (coupon) and principal at maturity. Bond prices move inversely to interest rates—when rates rise, bond prices fall.
Types of Yield
Coupon yield: annual interest / face value. Current yield: annual interest / market price. Yield to Maturity (YTM): total return if held to maturity, including price gain/loss.
Questions people ask
Why do bond prices fall when rates rise?
Existing bonds become less attractive when new bonds offer higher rates. Investors will only buy old bonds at a discount that makes yields competitive with new issues.
Education only, not personalized financial, tax or investment advice. Results are estimates based on the numbers you enter; real returns vary and losses happen.