Bond Yield Calculator

The coupon (interest payment) is fixed. When market rates rise, new bonds offer higher coupons, making old bonds less valuable—price drops to match yield. Inverse relationship.

Coupon rate is fixed at issuance. Yield fluctuates with market price. A 5% coupon bond bought at discount has higher yield; bought at premium has lower yield.

Duration measures price sensitivity to yield changes. Longer duration = more sensitive. A 1% yield change on a 5-year bond impacts price ~5%; on a 20-year bond ~20%.