Bond Pricing Calculator
It is an online tool for investment calculation and used to calculate pricing of bond based on par value, coupon payment, interest rate, maturity years and payment time.
Bond Price/Bond Valuation
Bond pricing is an actual matter in the field of financial instruments. It is a method of calculating the fair price or value of a bond. The price of a bond is calculated by finding out the present values of future cash flows and discounting them at an appropriate discount factor.
Bond Pricing Formula :
Bond Price = C × (1-(1+r)-n/r ) + F/(1+r)n
C = Coupon payment
n = No. of periods till maturity
r = Yield to maturity (YTM)
F = Face / Par value of bond
Calculator Outputs or Results :
Dirty or Market Price: Market trading price of the bond.
Clean Price : Market Price - Accrued interest.