Calculate fair market price of a bond from face value, coupon rate, and YTM.
Fair Market Bond Price
$1,077.95
Pricing Status
Trading at Premium
Annual Coupon Payment
$60.00
Total Coupon Cash Flows
$600.00
Discounts future periodic coupon payments and maturity face value back to present value using the market YTM rate.
1. Enter face value, coupon rate, and market YTM rate. 2. Select years to maturity and payment frequency. 3. View calculated fair bond price.
If YTM equals coupon rate, the bond trades at par ($1,000). If YTM is below coupon rate, bond trades at premium.
FAQ
A bond trades at a premium when its coupon rate exceeds current prevailing market yields.
More frequent coupon payments deliver cash earlier, slightly increasing present value when discounted.
Categories · Investments & Stocks