Bond Yield Calculator – Yield to Maturity
Solve the nominal annual yield of a fixed-coupon bond and compare its current yield.
Formula
Find r where price = Σ coupon/(1+r)^t + face/(1+r)^n; YTM = 100×frequency×r.
Face value at maturity = 1,000 · Bond purchase price = 950 · Annual coupon rate (%) = 5 · Whole years to maturity = 10 · Coupon payments per year = 2
How to use
- Enter face value, purchase price and coupon rate.
- Set whole remaining years and coupon frequency.
- Compare yield to maturity with current yield.
Examples
- Face 1210 bought for 1000, no coupon, 2 years remaining: YTM 10%.
Frequently asked questions
Why does current yield differ?
Current yield is annual coupon cash divided by price; it ignores the redemption gain or loss.
When is the bond valued?
Immediately after a coupon payment, without accrued interest, with whole years remaining.
Is YTM a guaranteed realized return?
No. It assumes promised payments and holding to maturity; reinvestment, default, taxes and fees can change returns.
Sources
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