A bond is a series of coupons plus redemption
A plain fixed-coupon bond pays coupon cash flows and returns its face value at the final period under the modeled assumptions. Each payment is discounted separately. A nominal annual coupon rate is divided by coupons per year to obtain a periodic coupon amount. Yield uses the same matching frequency.
The par-price check
When coupon rate equals yield under identical frequency conventions and valuation is on a coupon date, the price equals face value. A $1,000 face-value bond with a 5% coupon and 5% matching nominal yield prices at $1,000. Changing the yield while keeping coupons fixed changes their discounted value.
Coupon-date scope matters
This tool assumes valuation immediately after a coupon with whole remaining coupon periods. It does not calculate accrued interest, clean versus dirty settlement prices, call options, day-count fractions or credit losses. A traded quote between coupon dates can therefore differ without implying an arithmetic mistake.
Questions about this calculation
How can I check the inputs behind the result?
Open “Show calculation & assumptions” for the formula and timing conventions, then inspect the breakdown. Export CSV to keep the last calculated inputs and numerical results together.
Does this include taxes or changing market returns?
No tax calculation or variable market-return path is included. The task-specific assumptions above describe the scope. Calculated values are conditional on the inputs, not personalized recommendations.
Learn more
Start with the step-by-step future value formula guide.
Open the formula guide →How to calculate future value · Spreadsheet calculations · All learning guides
Use these figures to explore assumptions. Actual interest, returns, fees, taxes and purchasing power can differ.