Why does price differ from face?

If the market yield is higher than the coupon, the bond trades at a discount; if lower, at a premium.

If the market yield is higher than the coupon, the bond trades at a discount; if lower, at a premium.

Investment

Bond Calculator

Calculate the present value of a fixed-coupon bond.

Face Value

Coupon Rate

Yield to Maturity

Years to Maturity

$$P \;=\; \sum_{t=1}^{n}\frac{C}{(1+y)^{t}} \;+\; \frac{F}{(1+y)^{n}}$$

Where

Pbond price

Ccoupon payment

Fface value

yyield per period

nperiods to maturity

tperiod index