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Coupon Payment is a periodic interest payment that the bondholder receives during the time between when the bond is issued and when it matures.Coupon Payment [Coupon Pymt]

+10%

-10%

Face value is the nominal value or dollar value of a security stated by the issuer.Face Value [F]

+10%

-10%

A price is the quantity of payment or compensation given by one party to another in return for one unit of goods or services.Price

+10%

-10%

Years to Maturity are the years required to mature the bond.Years to Maturity [Yrs]

+10%

-10%

Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until the end of its lifetime.Yield to Maturity [YTM]

Credits

Softusvista Office (Pune), India

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Yield to Maturity Solution

STEP 0: Pre-Calculation Summary

STEP 1: Convert Input(s) to Base Unit

Coupon Payment: 3 --> No Conversion Required
Face Value: 1000 --> No Conversion Required
Price: 900 --> No Conversion Required
Years to Maturity: 10 Year --> 315569520 Second (Check conversion here)

STEP 2: Evaluate Formula

STEP 3: Convert Result to Outputs Unit

0.00315789507040777 --> No Conversion Required

2 Bond Yield Calculators

Yield to Maturity Formula

yield_to_maturity = (Coupon Payment+((Face Value-Price)/Years to Maturity))/((Face Value+Price)/2)
YTM = (Coupon Pymt+((F-Price)/Yrs))/((F+Price)/2)

What is Yield to Maturity?

Yield to maturity is considered a long-term bond yield but is expressed as an annual rate. In other words, it is the internal rate of return (IRR) of an investment in a bond if the investor holds the bond until maturity, with all payments made as scheduled and reinvested at the same rate. Yield to maturity is also referred to as book yield or redemption yield. Yield to maturity is similar to current yield, which divides annual cash inflows from a bond by the market price of that bond to determine how much money one would make by buying a bond and holding it for one year. Yet, unlike current yield, YTM accounts for the present value of a bonds future coupon payments.

How to Calculate Yield to Maturity?

Yield to Maturity calculator uses yield_to_maturity = (Coupon Payment+((Face Value-Price)/Years to Maturity))/((Face Value+Price)/2) to calculate the Yield to Maturity (YTM), Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until the end of its lifetime. Yield to Maturity (YTM) and is denoted by YTM symbol.

How to calculate Yield to Maturity using this online calculator? To use this online calculator for Yield to Maturity, enter Coupon Payment (Coupon Pymt), Face Value (F), Price (Price) and Years to Maturity (Yrs) and hit the calculate button. Here is how the Yield to Maturity calculation can be explained with given input values -> 0.003158 = (3+((1000-900)/315569520))/((1000+900)/2).

FAQ

What is Yield to Maturity?

Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until the end of its lifetime and is represented as YTM = (Coupon Pymt+((F-Price)/Yrs))/((F+Price)/2) or yield_to_maturity = (Coupon Payment+((Face Value-Price)/Years to Maturity))/((Face Value+Price)/2). Coupon Payment is a periodic interest payment that the bondholder receives during the time between when the bond is issued and when it matures, Face value is the nominal value or dollar value of a security stated by the issuer, A price is the quantity of payment or compensation given by one party to another in return for one unit of goods or services and Years to Maturity are the years required to mature the bond.

How to calculate Yield to Maturity?

Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until the end of its lifetime is calculated using yield_to_maturity = (Coupon Payment+((Face Value-Price)/Years to Maturity))/((Face Value+Price)/2). To calculate Yield to Maturity, you need Coupon Payment (Coupon Pymt), Face Value (F), Price (Price) and Years to Maturity (Yrs). With our tool, you need to enter the respective value for Coupon Payment, Face Value, Price and Years to Maturity and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

How many ways are there to calculate Yield to Maturity (YTM)?

In this formula, Yield to Maturity (YTM) uses Coupon Payment, Face Value, Price and Years to Maturity. We can use 2 other way(s) to calculate the same, which is/are as follows -

  • yield_to_maturity = (Coupon Payment+((Face Value-Price)/Years to Maturity))/((Face Value+Price)/2)
  • current_bond_yield = Coupon Payment/Current Bond Price

Where is the Yield to Maturity calculator used?

Among many, Yield to Maturity calculator is widely used in real life applications like {FormulaUses}. Here are few more real life examples -
{FormulaExamplesList}

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