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This bond pricing Excel template can help you with the following:

  • Bond pricing
  • Bond Valuation
  • Bond Yield

Click here to download the bond valuation template

For more analysis, see our present value article (a commonly used metric in bond pricing).

FAQs

1. What is a bond value?

The bond value is the price at which a bond can be purchased or sold.

2. What is the formula for bond value?

The formula for bond value is: Bond Value = Present Value of Future Payments / (1 + Yield to maturity)^Number of Years to Maturity

3. Is bond value the same as price?

No, bond value is not the same as price. Price is what you pay for a bond, while bond value is the price at which a bond can be purchased or sold.

4. Why does the bond value decrease when interest increase?

When interest rates increase, the prices of all bonds in the market decrease because new investments offer a higher yield. The lower price of a bond reflects the higher risk of investing in that bond.

5. Why does the bond value decrease?

Bond value decreases when interest rates increase because the investor can receive a higher yield by investing in a new bond. The lower price of the bond reflects the increased risk of investing in that bond.
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