Analyze the annualized return you earn by holding a bond to maturity. Enter the price, coupon rate, payment frequency, and maturity to see the implied yield plus key cash flow metrics.
Market price you pay today, including any premium or discount.
Amount the issuer repays at maturity. Most bonds use $1,000 par.
Stated coupon rate expressed as a percentage of par value.
How often coupon payments are made. Semi-annual payments are typical.
Time remaining until the bond matures and repays face value.
0.00%
Annual Coupon Payment: $0.00
Total Coupon Cash Flow: $0.00
Price vs. Par: Premium
Periodic YTM: 0.00% each period
Estimated Yield Spread: 0.00 bp vs. coupon
Yield to maturity is solved by discounting every coupon payment and the redemption amount back to today using a single interest rate. That rate is the YTM — the internal rate of return on the bond if all coupons are reinvested at the same rate and the bond is held to maturity.
This calculator iterates to find the yield that sets the present value of all future cash flows equal to the current market price. Adjust the price or coupon terms to see how premium and discount bonds imply different yields even when they share the same coupon rate.
Price = Σt=1nT C ÷ (1 + y/n)t + FV ÷ (1 + y/n)nT
C = Coupon payment per period (Par × Coupon rate / Frequency)
y = Yield to maturity (annualized)
n = Number of coupon payments per year
T = Years to maturity
FV = Face value repaid at maturity
Because the equation is non-linear in y, the calculator uses a bisection search to quickly converge on the yield that matches your inputs. You see both the quoted YTM and the periodic rate used to discount each payment.
Estimated YTM: 5.53%
Periodic YTM: 2.77%
Annual Coupon Payment: $50.00
Bond trades at a discount, so the yield is higher than the coupon rate.
Try changing the price to a premium, such as $1,050. The calculator will show a yield below the coupon rate because you're paying more than par for the same cash flows.
Use the bond YTM calculator to evaluate corporate, municipal, or treasury bonds side by side. Quantify how price changes translate into yield differences before you trade.
