PPolySim OS

Bond Pricing & Duration

Why do bond prices fall when rates rise? Price a bond, watch its value slide along the yield curve, and see how duration measures that interest-rate risk.

Bond Pricing & DurationLive

Controls

Presets

A bond's price is the present value of its coupons and face value, discounted at the yield. Price moves inversely to yield along a convex curve. Duration measures that sensitivity — a modified duration of 8 means roughly an 8% price drop per 1% rise in yield. Educational tool, not investment advice.

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Data Inspector

Price$1081.76
Premium/discountpremium
Macaulay duration8.08 yr
Modified duration7.92

Governing equation

Reading this result: The coupon beats the 4.0% yield, so the bond sells at a premium — about 8.2% over par — and its 7.9 modified duration is the % price drop per +1% yield.

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How it works

A bond's price is the present value of its future coupons and principal, discounted at the yield to maturity. Price and yield move inversely along a convex curve. Macaulay duration is the weighted-average time to cash flows; modified duration estimates the percentage price change per one-point yield move. Educational tool, not investment advice.

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Frequently asked questions

Is this bond pricing calculator tool really free?
Yes. Bond Pricing & Duration runs entirely in your browser using your device's own compute, so local use is free forever. You only pay Compute Tokens if you scale a job to the cloud.
Do I need to install anything?
No. Everything runs client-side in a modern browser — no downloads, no license, no account required to start.
Can I save or share my simulation?
Create a free account to save projects, and use a shareable embed or minted DOI to publish a live, interactive version anywhere.
How accurate are the results?
The solver uses established numerical methods, but results are for research and educational purposes and should be validated against experiment or professional review before you rely on them.