Bond Present Value Calculator

Use the Bond Present Value Calculator to compute the present value of a bond.

Form Input

Face Value is the value of the bond at maturity.

Annual Coupon Rate is the yield of the bond as of its issue date.

Annual Market Rate is the current market rate. It is also referred to as discount rate or yield to maturity. If the market rate is greater than the coupon rate, the present value is less than the face value. If it is less than the coupon rate, the present value is greater than the face value. If the two rates are the same, the present value is the same is the face value.

Years to Maturity is number of years until the face value of the bond is paid in full.

Payment interval is Annual, Semiannual, Quarterly or Monthly. The calculator adjusts the payment value, discount rate and number of payments to reflect the selected payment interval. For example, assume a semiannual payment interval is applied to the default values on the form. The adjusted payment is $200, the adjusted discount rate is 2% and the number of payments is 20.

 

Bond Present Value Calculator
Face Value ($):
Annual Coupon Rate (%):
Annual Market Rate:
Years to Maturity:
Payment Interval:    Annual    Semiannual    Quarterly  Monthly
   


Here are bond present values for the above input values using different adjusted market rates.


Bond Present Value Calulator Results
Annual Coupon Payment
Adjusted Coupon Payment
Number Payments
Adjusted Market Rate
Present Value Paid at Maturity
Present Value of Interest Payments
Present Value of Bond


Bond Present Values

 

Computational Notes

The calculator, uses the following formulas to compute the present value of a bond:

Present Value Paid at Maturity = Face Value / (Market Rate/ 100) ^ Number Payments

Present Value of Interest Payments = Payment Value * (1 - (Market Rate / 100) ^ -Number Payments) / Number Payments)

Present Value of Bond = Present Value Paid at Maturity + Present Value of Interest Payments

See Present Value Concepts - Calculating the Present Value of a Bond and Present Value of a Bond Formula for discussions on computing the present value of bonds.

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