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Bond Price Calculator
Estimate the fair market value of a bond.
Live Calculation
Estimated Price
926.40
$
Live Step-by-Step Calculation
# Given Values:
Face Value: 1000
Coupon Rate: 5
Market Rate: 6
Years to Maturity: 10
# Formula:
Estimated Price = (face * (coupon/100) * (1 - (1 + rate/100)^-years) / (rate/100)) + (face / (1 + rate/100)^years)
Estimated Price = (face * (coupon/100) * (1 - (1 + rate/100)^-years) / (rate/100)) + (face / (1 + rate/100)^years)
# Substitution:
Estimated Price = (1000 * (5/100) * (1 - (1 + 6/100)^-10) / (6/100)) + (1000 / (1 + 6/100)^10)
Estimated Price = (1000 * (5/100) * (1 - (1 + 6/100)^-10) / (6/100)) + (1000 / (1 + 6/100)^10)
Final Answer: 926.3991 $
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