Bond Calculator

Estimate bond yield to maturity, current yield, and coupon payments.

Formula & Methodology

Yield to maturity solves the bond price equation: price = Σ (coupon / (1+YTM)^t) + face / (1+YTM)^n.

Worked Example

A $1,000 face bond paying 5% coupons priced at $950 with 10 years to maturity has a YTM of about 5.6%.

Frequently Asked Questions

What is yield to maturity?

YTM is the total annualized return if you hold a bond to its maturity date, accounting for coupons and the difference between price and face value.

How do price and yield relate?

They move inversely. When a bond's price falls below face value, its yield rises above the coupon rate, and vice versa.

Does this account for call features?

No. Callable bonds can be redeemed early, which changes the actual yield. This calculator assumes the bond runs to maturity.

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