Bond Calculator
Price a bond from its coupon rate, years to maturity and yield, with current yield. Free and instant.
Bond price
₹1,02,106
Trading above face value (premium)
Premium / discount
2.11%
Vs face value
Current yield
6.86%
Annual coupon ÷ price
Total coupons
₹35,000
To maturity
Bond prices move inversely to yields. In India, listed bonds and debentures trade on the NSE/BSE debt segment; coupon income is taxable at your slab and capital gains depend on the holding period.
Bond Calculator on True Calculator gives you an instant, accurate answer with no sign-up and no app install. Price a bond from its coupon rate, years to maturity and yield, with current yield. Free and instant. Every result shows the formula and a worked example so you can verify the calculation yourself, and all values are computed in your own browser — your numbers never leave your device.
Popular uses: bond calculator · bond price calculator · yield to maturity calculator
How We Calculate
This calculator uses standard financial formulas verified by our team. All calculations are performed instantly in your browser using JavaScript — no data is sent to any server.
We use RBI-approved formulas and regularly updated bank rates. All rates and standards are sourced from official government and regulatory websites.
When to Use This Calculator
Use this calculator when you are buying or valuing a bond in the secondary market — government securities, corporate debentures, or tax-free bonds — and need the fair price for a given yield. It is also the standard tool for comparing bonds with different coupons on equal footing: pricing both at the same yield shows which is genuinely cheaper or richer. For Indian investors using RBI Retail Direct or the NSE/BSE debt segment, the price, current yield, and total coupon figures together describe the income stream and the capital position of the holding. The inverse relationship the tool demonstrates — price falling as yields rise — is exactly what drives bond-fund returns, so the calculator also helps understand the behaviour of your debt mutual funds. Coupon interest is taxable at your slab; the tool shows pre-tax figures.
How to Use This Calculator
- Step 1: Enter the bond's face value — the amount repaid at maturity, typically ₹1,00,000 for Indian bonds.
- Step 2: Set the coupon rate the bond pays annually on the face value.
- Step 3: Enter the years to maturity and the yield-to-maturity you expect or the market rate.
- Step 4: Choose yearly or half-yearly coupons, then read the bond price, current yield, and total coupon income.
Worked Example
A ₹1,00,000 bond with a 7% coupon and 5 years to maturity, valued at a 6.5% yield with half-yearly coupons, is priced at about ₹1,02,106 — a premium, because the coupon beats the yield. The current yield is ₹7,000 ÷ ₹1,02,106 = 6.86%. If the same bond were valued at an 8.5% coupon and 8.5% yield, it would price at exactly face value, ₹1,00,000, confirming that a bond sits at par when coupon equals yield.
Tips and Common Mistakes
- •Check the bond's credit rating before investing — higher yield usually means higher default risk.
- •Use the current yield, not the coupon, when comparing the income from bonds bought at a premium or discount.
- •Hold listed bonds beyond 12 months to qualify for long-term capital gains treatment in India.
- ✗Avoid assuming the face value is what you will pay — the price card shows the actual market cost.
- ✗Avoid ignoring credit risk for corporate bonds; a default can wipe out the yield advantage entirely.
Frequently Asked Questions
What does bond price tell me?
The price is what you would pay today to buy the bond's remaining coupons plus the face value at maturity, discounted at the yield you enter. If the coupon rate is higher than the yield, the bond trades above par (a premium); if lower, below par.
Why do bond prices move opposite to yields?
Because the coupon stream is fixed. When market yields rise, new bonds pay more, so existing bonds must drop in price to compete; when yields fall, prices rise. The example in the calculator — a 7% coupon priced at ₹1,02,106 when the yield is 6.5% — shows a premium bond.
What is the difference between coupon rate and current yield?
The coupon rate is fixed on the face value (₹7,000 per year on a ₹1,00,000 bond). The current yield divides that coupon by the price you pay — ₹7,000 ÷ ₹1,02,106 = 6.86%. If you buy at a discount, current yield exceeds the coupon rate.
How are Indian bonds taxed?
Interest income is taxed at your slab rate. Capital gains are taxed as short-term or long-term depending on the holding period (long-term for listed bonds held over 12 months). Several tax-free bonds exist but their coupons are usually lower.
Where do Indians buy bonds?
Government bonds, corporate debentures and tax-free bonds trade on the NSE and BSE debt segments, and RBI Retail Direct lets individuals buy government bonds directly. Credit risk matters: a corporate bond pays more but can default — check the rating before investing.
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