Calculate bond value, yields, and investment returns. Evaluate fixed-income securities with this simple calculator.
Method:
Bond Price = PV of Future Coupon Payments + PV of Face Value
A bond is a fixed-income security where you lend money to a government or company. In return, you receive regular interest payments (coupons) and get back the face value at maturity.
Coupon rate is fixed when the bond is issued. Market rate changes daily. If market rate > coupon rate, bond price falls below face value (discount bond).
Generally yes, bonds are less volatile. However, they offer lower returns. The safest bonds are government bonds; corporate bonds carry higher risk and higher returns.