Compute current yield, yield to maturity (YTM), and interest rate risk (duration) for any fixed-coupon bond.
A bond calculator evaluates fixed-income securities by computing current yield, yield to maturity (YTM), and interest rate risk via Macaulay and modified duration. Given the bond's face value, coupon rate, current market price, and years to maturity, our bond calculator uses bisection search to find the YTM that equates the present value of all future coupon payments plus face value to the current market price. Duration estimates how much the bond's price will change for a 1% change in interest rates — useful for managing interest rate risk in a bond portfolio.
$50.00
5.26%
5.66%
Discount (-$50.00 capital)
7.93 years
7.71 years
1% rate rise → bond price falls ~7.7%
Bond price = present value of all future coupon payments + face value at maturity, discounted at YTM. Current yield is the simple annual income / price. YTM is the internal rate of return assuming you hold to maturity and reinvest coupons at the same rate. Modified duration estimates price sensitivity to a 1% interest rate change.
Cross-checked against authoritative formulas (IRS, NIST, ACSM) and updated for 2025/2026 tax years and rates.
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A bond calculator is a free fixed-income analysis tool that computes current yield, yield to maturity (YTM), and interest rate risk (duration). Our bond calculator takes face value, coupon rate, current market price, years to maturity, and coupon frequency, then uses bisection search to find the YTM — the rate that discounts all future coupon payments plus face value back to the current market price. The calculator also shows Macaulay and modified duration, which estimate price sensitivity to interest rate changes.
How it works
Our bond calculator computes current yield, YTM (via bisection search), Macaulay duration, and modified duration for any fixed-coupon bond.
Type the bond's face value (typically $1,000 for US bonds) and the annual coupon rate (the fixed interest payment stated on the bond). The annual coupon income = face × coupon rate.
Type the current market price you would pay for the bond, and the years until the bond matures and pays back face value. If price > face the bond trades at premium; if < face at discount; if = face at par.
Select how often the bond pays coupons. Most US bonds pay semiannually. The bond calculator adjusts the discount period accordingly.
The bond calculator shows annual coupon income, current yield, YTM, Macaulay duration, and modified duration. YTM is the total return if held to maturity. Modified duration estimates price change for a 1% interest rate move.
Annual coupon income and total return on a $10,000 face-value 10-year corporate bond at common credit ratings:
| Credit rating | Coupon rate | Annual income | Total 10-yr return |
|---|---|---|---|
| AAA | 4.5% | $450 | $14,500 |
| A | 5.0% | $500 | $15,000 |
| BBB | 5.5% | $550 | $15,500 |
| High-yield BB | 7.0% | $700 | $17,000 |
Bond prices fluctuate inversely with rates. Total return assumes held to maturity + reinvested coupons at same rate. Use the calculator above with YTM and current market price for accurate pricing.