Bond Calculator
Calculate bond prices, yields, and returns for government and corporate bonds
The Bond Calculator helps you analyze bond investments by calculating current price, yield to maturity, current yield, and total returns. Perfect for evaluating government bonds, corporate bonds, and municipal bonds.
Bond Details
Tax Considerations (Optional)
Bond Examples
Bond Analysis Results
Enter bond details to see analysis
How Bonds Work
Bond Basics
Bond Pricing
Types of Bonds
Government Bonds
Treasury Bills: Short-term (≤1 year), sold at discount
Treasury Notes: Medium-term (2-10 years), pay semi-annual interest
Treasury Bonds: Long-term (10-30 years), highest interest payments
TIPS: Treasury Inflation-Protected Securities
Corporate Bonds
Investment Grade: High credit quality (BBB- or higher)
High Yield: Lower credit quality, higher returns
Convertible: Can be converted to company stock
Callable: Issuer can redeem before maturity
Municipal Bonds
General Obligation: Backed by taxing power of issuer
Revenue Bonds: Backed by specific revenue source
Tax Benefits: Often exempt from federal/state taxes
AMT Bonds: Subject to Alternative Minimum Tax
Example: 10-Year Treasury Bond
Calculate the price of a 10-year Treasury bond
Bond Details
Calculation Results
Frequently Asked Questions
Why do bond prices move inversely to interest rates?
When interest rates rise, new bonds offer higher yields, making existing bonds with lower rates less attractive. Investors will only buy existing bonds at a discount to compensate for the lower yield. Conversely, when rates fall, existing bonds with higher rates become more valuable and trade at a premium.
What's the difference between current yield and yield to maturity?
Current yield is simply the annual coupon payment divided by the current price. Yield to maturity considers the total return including capital gains or losses if held to maturity. YTM is more comprehensive as it accounts for the time value of money and the bond's purchase price relative to its face value.
Are bonds safer than stocks?
Generally yes, especially government bonds. Bonds provide more predictable income and have priority over stocks in bankruptcy. However, bonds still carry risks including interest rate risk, credit risk, and inflation risk. High-yield corporate bonds can be riskier than some dividend-paying stocks.
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