LaTeX
P=\sum_{t=1}^{n}\frac{C}{(1+y)^t}+\frac{F}{(1+y)^n}Variables
- P: bond price
- C: coupon per period
- F: face value
- y: yield per period
- n: periods
How to use this formula
Discounts coupon payments and face value using yield per period.
Important notes
- Coupon frequency and yield units must match.
- Market conventions may include accrued interest and day-count rules.
Quick example
A zero-coupon bond sets C=0.
Applicability, worked calculation, and verification
Assumptions and domain checks
- Coupon frequency and yield units must match.
- For the Coupon Bond Price, every denominator must be nonzero, and the numerator and denominator must remain correctly grouped.
- For the Coupon Bond Price, the index variable, lower bound, upper bound, and any empty-sum or empty-product convention must be clear.
- Match the interest rate to the compounding period, convert percentages to decimals, and keep cash-flow timing consistent.
Worked example
A zero-coupon bond sets C=0.
Common mistakes
- When copying Coupon Bond Price, keep the complete numerator and denominator grouped; a missing brace or parenthesis changes the result.
- Verify the result of Coupon Bond Price with a known case, inverse operation, dimensional check, or independent calculation before publishing it.
Continue the workflow
Use Coupon Bond Price in your own work
- Check the domainMatch the variables and assumptions to the problem before substituting values.
- Copy the exact notationPreserve grouping, signs, and exponents in
P=\sum_{t=1}^{n}\frac{C}{(1+y)^t}+\frac{F}{(1+y)^n}. - Edit or convertOpen the expression in the LaTeX editor, then export it for your document or web page.
Review and verification
Last reviewed: 2026-07-23
Automated quality check: Kept noindex until the missing evidence is supplied.
Formula references
- Algebra and Trigonometry 2eOpenStax, Rice University — Reviewed algebra, functions, sequences, trigonometry, and analytic geometry definitions and examples.
Frequently asked questions
What is the Coupon Bond Price used for?
Discounts coupon payments and face value using yield per period.
Can I copy this formula as LaTeX?
Yes. Copy P=\sum_{t=1}^{n}\frac{C}{(1+y)^t}+\frac{F}{(1+y)^n} or open it in the LaTeX editor.
What should I check before using it?
Confirm that each variable, unit, domain restriction, and assumption matches the problem.