Bond Yield to Maturity (YTM) Calculator

Your details

The principal amount repaid at maturity, also called par value.
The price you pay today. A price below face value is a discount bond; above is a premium bond.
The annual interest rate stated on the bond, as a percentage of face value. Enter 0 for a zero-coupon bond.
%
How often coupon payments are made each year.
Time from today until the bond repays its face value.
years
Currency
Yield to Maturity (exact)Moderate yield
0.0566%

Exact annualised YTM via Newton-Raphson iteration

YTM (approximate)0.0564%
Current yield0.0526%
Macaulay duration7.9273years
Modified duration7.709years
Total coupon income$500.00
Capital gain / loss$50.00
Total nominal return$550.00
YTM (exact)0.0566%
YTM (approx)0.0564%
Current yield0.0526%

YTM is 5.662% - this bond trades discount (price below par).

  • This is a discount bond trading at 95.0% of par, so YTM (5.662%) exceeds the coupon rate (5.00%).
  • At maturity you receive a capital gain of 50.00 per bond (face minus purchase price).
  • Modified duration is 7.71 years, meaning a 1% rise in market rates would reduce this bond's price by roughly 7.71%.
  • YTM assumes you reinvest each coupon at the same 5.662% rate and hold the bond all 10 years to maturity.

Next stepCompare YTM against current Treasury rates for the same maturity to gauge the credit spread, and check the bond's call provisions before assuming full hold-to-maturity income.

 = Powered by OnlyCalculators