Yield to Maturity Calculator

Yield to Maturity Calculator is a YTM Calculator to calculate the annual return rate for a bond when it is held until maturity. Bond yield calculator to calculate current bond yield and yield to maturity. A yield to maturity formula is shown at the bottom on how to calculate yield to maturity.

Yield to Maturity Formula

The calculation of yield to maturity is quiet complicated, here is a yield to maturity formula to estimate the yield to maturity.
Yield to Maturity (YTM) = (C+(F-P)/n)/(F+P)/2, where
C = Bond Coupon Rate
F = Bond Par Value
P = Current Bond Price
n = Years to Maturity

How to Calculate Yield to Maturity

To apply the yield to maturity formula, we need to define the face value, bond price and years to maturity.
For example, if you purchased a $1,000 for $900. The interest is 8 percent, and it will mature in 12 years, we will plugin the variables.
C = 1000*0.08 = 80

YTM Calculator

The YTM calculator has two parts, one is to calculate the current bond yield, and the other is to calculate yield to maturity.

Bond Yield Formula

Following is the bond yield formula on how to calculate bond yield.
Current Bond Yield (CBY) = F*C/P, where
C = Bond Coupon Rate
F = Bond Par Value
P = Current Bond Price