Free Bond Yield to Maturity Calculator
Calculate the yield to maturity (YTM) for a bond based on its current price, face value, coupon rate, and time to maturity.
USD
USD
%
years
Approximate YTM
5.64 %
Annual Coupon Payment$50
Current Yield5.26 %
Total Coupon Income$500
Approximate YTM vs Years to Maturity
Bond Yield to Maturity
YTM is the total return expected on a bond held to maturity, accounting for coupon payments and any price discount or premium.
Approximate YTM Formula
YTM = [C + (F - P) / n] / [(F + P) / 2]
Where:
Premium vs Discount
Example Calculation
$1,000 face value bond, $950 current price, 5% coupon, 10 years to maturity.
- 01Annual coupon = $1,000 x 5% = $50
- 02Price gain = ($1,000 - $950) / 10 = $5/year
- 03Average price = ($1,000 + $950) / 2 = $975
- 04Approx YTM = ($50 + $5) / $975 = 5.64%
Frequently Asked Questions
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