Bond Pricing Calculator

Formula: $$P = \sum_{t=1}^{T} \frac{C}{(1+r)^t} + \frac{FV}{(1+r)^T}$$
Where:
$C$ = Coupon Payment per period
$T$ = Total number of periods
$FV$ = Face Value
$r$ = Discount Rate / Yield per period

Coupon Payment (C): Number of Periods (T): Face Value (FV): Discount Rate / Yield (r, decimal):

Model Interpretation

The bond price is the present value of all future cash flows (coupons + face value).
A higher discount rate lowers the bond price, and vice versa.
This formula is suitable for fixed-rate, non-callable bonds.

Key Assumptions

Coupons are paid at regular, known intervals.
Discount rate (yield) is constant over the bond's life.
No default risk or transaction costs are included.
Payments are made at the end of each period.