Bond Price Calculator

How does the value of a bond change when interest rates change?

Surprising as it may sound, the higher the current interest rates, and thus the yield to maturity of the bond, the lower its value – and vice versa.

Calculate the value of a bond easily with our bond calculator!

Let’s say you own a bond that will pay back CHF 100’000 (this is called the face value) in 10 years.

CHF
Years to maturity
10Years

Let’s also assume the bond has a coupon rate of 0.50%, that is it pays an interest of CHF 500 at the end of every year until maturity.

Annual coupon rate
0.50%

Now, at what value will your bond be traded or priced? The value primarily depends on prevailing interest rates, plus some compensation the market demands for the risk that the bond defaults on its obligations, be it because some interest payments are not paid in time, or because its face value is not fully paid back to its creditors when due (credit risk or default risk). These and all other factors are summarized in one single number, the bond’s yield to maturity (YTM).

Yield to maturity (YTM)
0.75%

So your bond is now priced, or traded, at:

2.40%
CHF 97’600

Further information

  • You can read here how inflation impacts bonds and what you can do about it – Bonds in Inflation: Safe is Suddenly No Longer Safe.
  • The yield to maturity of a bond can be thought of as the money weighted return of the bond, or its internal rate of return. Learn more about the performance calculation of a portfolio.
  • The Swiss National Bank (SNB) publishes the yields of Swiss Confederation bonds with a maturity of 10 years here.
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