Bond Yield Calculator (Current Yield and Yield to Maturity)
Enter the bond price, coupon and maturity to find its current yield and YTM.
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Bond Yield Calculator (Current Yield and Yield to Maturity) by TheCalcTools
How the Bond Yield Calculator (Current Yield and Yield to Maturity) works
Yield to maturity is the discount rate that makes the present value of all remaining coupons plus the face value equal to the price. It has no closed form, so the calculator solves it numerically (bisection to full precision).
With semi-annual coupons, YTM is quoted as the per-period yield × 2 (bond-equivalent yield). The current yield only looks at this year’s coupon relative to the price.
The formula
Worked example
Using the default values shown in the calculator:
| Bond price | $950 |
|---|---|
| Face value | $1000 |
| Coupon rate (yearly) | 6 % |
| Years to maturity | 5 |
| Coupons per year | Semi-annual |
- A 6% semi-annual 5-year bond priced at 950: current yield 6.32%, YTM 7.21.
- The shortcut formula gives 7.18%.
Result:
| Yield to maturity (YTM) | 7.21% |
|---|---|
| Current yield | 6.32% |
| Approximate YTM (shortcut formula) | 7.18% |
| Trading at | A discount (YTM above coupon) |
| Total coupons to maturity | $300.00 |
Frequently asked questions
Why does the bond price fall when rates rise?
Fixed coupons are worth less when new bonds pay more, so the price falls until its yield matches the market.
Sources and further reading
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This calculator gives estimates for information only. It is not financial advice, and your lender's or provider's figures will govern. Rates, fees and rules vary. See our disclaimer.