How to calculate a bond’s price

fPRICEyˣ values a semiannual coupon bond between any two dates, and works out the accrued interest at the same time.

Problem

A bond pays a 4.5% coupon and matures on September 15, 2034. You buy it on April 21, 2026 to yield 5.2%. What is its price per $100 of face value, and how much accrued interest do you pay?

Keystrokes

fREGCLx
0.00
Clears all registers.
5.2i
5.20
The yield to maturity you want.
4.5PMT
4.50
The annual coupon rate.
4.212026ENTER
4.21
The settlement date, in month.dayyear form.
9.152034fPRICEyˣ
95.28
The maturity date, then the price per $100.
x≷y
0.45
The accrued interest.
+
95.73
What you actually pay per $100.

Answer

The price is 95.28 per $100. Add 0.45 of accrued interest for a total of 95.73.

Why it works

The price is the present value of the remaining coupons and the $100 repaid at maturity, discounted at the yield. Because the yield is above the coupon, the bond sells below 100, at a discount.

Between coupon dates, the seller has earned part of the next coupon. You pay it to them as accrued interest and get it back with the full coupon.

Dates

With the default month-day-year format, 4.212026 means April 21, 2026. Press gD.MY4 if you prefer day-month-year. PRICE uses actual days between coupon dates, as US Treasury bonds do.

Questions

What is the price per $1,000 bond?

Multiply the price per $100 by 10.