Bond Yield to Maturity
YTM, current yield, total return.
Yield to maturity
5.662%
Current yield: 5.26%
Cash flows
Annual coupon$50
Total coupons$500
Capital gain (face − price)$50
Total nominal return$550
YTM is the discount rate that makes the present value of all future cash flows equal the price. Bond is at par when YTM = coupon rate, at a discount when price < face (YTM > coupon), at a premium when price > face (YTM < coupon). Solved by binary search on the bond pricing equation.
About
Enter face value, coupon rate, current price, years to maturity, and coupon frequency. Get yield to maturity (the bond's true return if held), current yield, and a breakdown of cash flows.
How to use
- Enter bond details.
- Enter current price.
- Read YTM.
FAQ
When does YTM match coupon rate?+
When the bond trades at par (price = face value). Discount bonds (price below face) have YTM above coupon. Premium bonds (price above face) have YTM below coupon.