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Yield to Maturity Calculator

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Bond Yield Important Formulas of Investment Forex Management Interest Rate More >>

✖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 [CP]			+10% -10%
✖Face Value is the nominal value or dollar value of a security stated by the issuer.ⓘ Face Value [FV]			+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]

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Yield to Maturity Solution

STEP 0: Pre-Calculation Summary

Formula Used

Yield to Maturity (YTM) = (Coupon Payment+((Face Value-Price)/Years to Maturity))/((Face Value+Price)/2)
YTM = (CP+((FV-Price)/Yrs))/((FV+Price)/2)
This formula uses 5 Variables

Variables Used

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.
Coupon Payment - 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 - Face Value is the nominal value or dollar value of a security stated by the issuer.
Price - A Price is the quantity of payment or compensation given by one party to another in return for one unit of goods or services.
Years to Maturity - Years to Maturity are the years required to mature the bond.

STEP 1: Convert Input(s) to Base Unit

Coupon Payment: 20 --> No Conversion Required
Face Value: 800 --> No Conversion Required
Price: 900 --> No Conversion Required
Years to Maturity: 15 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

YTM = (CP+((FV-Price)/Yrs))/((FV+Price)/2) --> (20+((800-900)/15))/((800+900)/2)

Evaluating ... ...

YTM = 0.0156862745098039

STEP 3: Convert Result to Output's Unit

0.0156862745098039 --> No Conversion Required

FINAL ANSWER

0.0156862745098039 ≈ 0.015686 <-- Yield to Maturity (YTM)

(Calculation completed in 00.004 seconds)

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< Bond Yield Calculators

Coupon Bond Valuation

LaTeX Go Coupon Bond = Annual Coupon Rate*((1-(1+Yield to Maturity (YTM))^(-Number of Payments Per Year))/(Yield to Maturity (YTM)))+(Par Value at Maturity/(1+Yield to Maturity (YTM))^(Number of Payments Per Year))

Yield to Maturity

LaTeX Go Yield to Maturity (YTM) = (Coupon Payment+((Face Value-Price)/Years to Maturity))/((Face Value+Price)/2)

Bank Discount Yield

LaTeX Go Bank Discount Yield = (Discount/Face Value)*(360/Days to Maturity)*100

Current Bond Yield

LaTeX Go Current Bond Yield = Coupon Payment/Current Bond Price

Yield to Maturity Formula

LaTeX Go

Yield to Maturity (YTM) = (Coupon Payment+((Face Value-Price)/Years to Maturity))/((Face Value+Price)/2)
YTM = (CP+((FV-Price)/Yrs))/((FV+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 bond's future coupon payments.

How to Calculate Yield to Maturity?

Yield to Maturity calculator uses Yield to Maturity (YTM) = (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) 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 (CP), Face Value (FV), Price (Price) & Years to Maturity (Yrs) and hit the calculate button. Here is how the Yield to Maturity calculation can be explained with given input values -> 0.015686 = (20+((800-900)/15))/((800+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 = (CP+((FV-Price)/Yrs))/((FV+Price)/2) or Yield to Maturity (YTM) = (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 & 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 (YTM) = (Coupon Payment+((Face Value-Price)/Years to Maturity))/((Face Value+Price)/2). To calculate Yield to Maturity, you need Coupon Payment (CP), Face Value (FV), Price (Price) & Years to Maturity (Yrs). With our tool, you need to enter the respective value for Coupon Payment, Face Value, Price & Years to Maturity and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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