Coupon Bond Valuation Calculator

✖Annual Coupon Rate is the nominal yield paid by a fixed-income security.ⓘ Annual Coupon Rate [C_A]			+10% -10%
✖Yield to Maturity (YTM) is the total return anticipated on a bond if the bond is held until the end of its lifetime.ⓘ Yield to Maturity (YTM) [YTM]			+10% -10%
✖Number of Payments Per Year is the count on the payments made for the interest on bond in a particular year.ⓘ Number of Payments Per Year [n_PYr]			+10% -10%
✖Par Value at Maturity is the amount of money that the issuer promises to repay bondholders at the maturity date of the bond.ⓘ Par Value at Maturity [P_vm]			+10% -10%

✖Coupon Bond is a type of bond that includes attached coupons and pays periodic (typically annual or semi-annual) interest payments during its lifetime and its par value at maturity.ⓘ Coupon Bond Valuation [CB]

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Formula

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Coupon Bond Valuation

Formula

`"CB" = "C"_{"A"}*((1-(1+"YTM")^(-"n"_{"PYr"}))/("YTM"))+("P"_{"vm"}/(1+"YTM")^("n"_{"PYr"}))`

Example

`"976.7569"="0.05"*((1-(1+"0.01")^(-"12"))/("0.01"))+("1100"/(1+"0.01")^("12"))`

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Coupon Bond Valuation Solution

STEP 0: Pre-Calculation Summary

Formula Used

Coupon Bond = Annual Coupon Rate*((1-(1+Yield to Maturity (YTM))^(-Number of Payments Per Year))/(Yield to Maturity (YTM)))+(Par Value at Maturity/(1+Yield to Maturity (YTM))^(Number of Payments Per Year))
CB = C_A*((1-(1+YTM)^(-n_PYr))/(YTM))+(P_vm/(1+YTM)^(n_PYr))
This formula uses 5 Variables

Variables Used

Coupon Bond - Coupon Bond is a type of bond that includes attached coupons and pays periodic (typically annual or semi-annual) interest payments during its lifetime and its par value at maturity.
Annual Coupon Rate - Annual Coupon Rate is the nominal yield paid by a fixed-income security.
Yield to Maturity (YTM) - Yield to Maturity (YTM) is the total return anticipated on a bond if the bond is held until the end of its lifetime.
Number of Payments Per Year - Number of Payments Per Year is the count on the payments made for the interest on bond in a particular year.
Par Value at Maturity - Par Value at Maturity is the amount of money that the issuer promises to repay bondholders at the maturity date of the bond.

STEP 1: Convert Input(s) to Base Unit

Annual Coupon Rate: 0.05 --> No Conversion Required
Yield to Maturity (YTM): 0.01 --> No Conversion Required
Number of Payments Per Year: 12 --> No Conversion Required
Par Value at Maturity: 1100 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

CB = C_A*((1-(1+YTM)^(-n_PYr))/(YTM))+(P_vm/(1+YTM)^(n_PYr)) --> 0.05*((1-(1+0.01)^(-12))/(0.01))+(1100/(1+0.01)^(12))

Evaluating ... ...

CB = 976.756901665343

STEP 3: Convert Result to Output's Unit

976.756901665343 --> No Conversion Required

FINAL ANSWER

976.756901665343 ≈ 976.7569 <-- Coupon Bond

(Calculation completed in 00.020 seconds)

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Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

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Chandigarh University (CU), Punjab

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Coupon Bond Valuation

Go Coupon Bond = Annual Coupon Rate*((1-(1+Yield to Maturity (YTM))^(-Number of Payments Per Year))/(Yield to Maturity (YTM)))+(Par Value at Maturity/(1+Yield to Maturity (YTM))^(Number of Payments Per Year))

Yield to Call for Callable Bond

Go Yield to Call = ((Coupon Payment+(Theoretical Price of Call Option-Current Bond Price)/Number of Years to Track Growth)/((Theoretical Price of Call Option+Current Bond Price)/2))

Bond Convexity Approximation

Go Bond Convexity Approximation = (Bond Price when Incremented+Bond Price when Decremented-2*(Bond Value))/(2*Bond Value*(Change in Interest Rate)^2)

Yield to Maturity

Go Yield to Maturity (YTM) = (Coupon Payment+((Face Value-Price)/Years to Maturity))/((Face Value+Price)/2)

Holding Period Yield

Go Holding Period Yield = (Interest Paid+Face Value-Purchase Price)/Face Value

Zero Coupon Bond Effective Yield

Go Zero Coupon Bond Effective Yield = (Face Value/Present Value)^(1/Number of Periods)-1

Zero Coupon Bond Value

Go Zero Coupon Bond Value = Face Value/(1+Rate of Return/100)^Time to Maturity

Bank Discount Yield

Go Bank Discount Yield = (Discount/Face Value)*(360/Days to Maturity)*100

Money Market Yield

Go Money Market Yield = Holding Period Yield*360/Time till Maturity

Current Bond Yield

Go Current Bond Yield = Coupon Payment/Current Bond Price

Coupon Bond Valuation Formula

What is Coupon Bond Valuation?

The formula for a coupon bond determines the bond’s price by discounting the probable future cash flows to present value and then summing up all of them. It expresses the coupon as a percentage of the bond’s par value. The future cash flows are the periodic coupon payments and the par value to be received at maturity.

C = Annual Coupon Payment,
F = Par Value at Maturity,
Y = Yield to Maturity,
n = Number of Payments Per Year
t = Number of Years Until Maturity

How to Calculate Coupon Bond Valuation?

Coupon Bond Valuation calculator uses Coupon Bond = Annual Coupon Rate*((1-(1+Yield to Maturity (YTM))^(-Number of Payments Per Year))/(Yield to Maturity (YTM)))+(Par Value at Maturity/(1+Yield to Maturity (YTM))^(Number of Payments Per Year)) to calculate the Coupon Bond, The Coupon Bond Valuation formula is defined as a formula which determines the bond’s price by discounting the probable future cash flows to present value and then summing up all of them. Coupon Bond is denoted by CB symbol.

How to calculate Coupon Bond Valuation using this online calculator? To use this online calculator for Coupon Bond Valuation, enter Annual Coupon Rate (C_A), Yield to Maturity (YTM) (YTM), Number of Payments Per Year (n_PYr) & Par Value at Maturity (P_vm) and hit the calculate button. Here is how the Coupon Bond Valuation calculation can be explained with given input values -> 976.7569 = 0.05*((1-(1+0.01)^(-12))/(0.01))+(1100/(1+0.01)^(12)).

FAQ

What is Coupon Bond Valuation?

The Coupon Bond Valuation formula is defined as a formula which determines the bond’s price by discounting the probable future cash flows to present value and then summing up all of them and is represented as CB = C_A*((1-(1+YTM)^(-n_PYr))/(YTM))+(P_vm/(1+YTM)^(n_PYr)) or Coupon Bond = Annual Coupon Rate*((1-(1+Yield to Maturity (YTM))^(-Number of Payments Per Year))/(Yield to Maturity (YTM)))+(Par Value at Maturity/(1+Yield to Maturity (YTM))^(Number of Payments Per Year)). Annual Coupon Rate is the nominal yield paid by a fixed-income security, Yield to Maturity (YTM) is the total return anticipated on a bond if the bond is held until the end of its lifetime, Number of Payments Per Year is the count on the payments made for the interest on bond in a particular year & Par Value at Maturity is the amount of money that the issuer promises to repay bondholders at the maturity date of the bond.

How to calculate Coupon Bond Valuation?

The Coupon Bond Valuation formula is defined as a formula which determines the bond’s price by discounting the probable future cash flows to present value and then summing up all of them is calculated using Coupon Bond = Annual Coupon Rate*((1-(1+Yield to Maturity (YTM))^(-Number of Payments Per Year))/(Yield to Maturity (YTM)))+(Par Value at Maturity/(1+Yield to Maturity (YTM))^(Number of Payments Per Year)). To calculate Coupon Bond Valuation, you need Annual Coupon Rate (C_A), Yield to Maturity (YTM) (YTM), Number of Payments Per Year (n_PYr) & Par Value at Maturity (P_vm). With our tool, you need to enter the respective value for Annual Coupon Rate, Yield to Maturity (YTM), Number of Payments Per Year & Par Value at Maturity and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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