Bond Calculator
Calculate bond yield to maturity, current yield, and bond price. Evaluate your bond investments with accurate return calculations.
How to Use This Bond Calculator
- Enter the bond's face value (par value), typically $1,000.
- Enter the annual coupon rate (%) and years to maturity.
- Enter the current market price of the bond.
- Click "Calculate Yield" to find current yield and YTM, or "Calculate Price" to find the price given a target YTM.
Bond Formulas
Where C = annual coupon, F = face value, P = price, n = years to maturity.
Examples
Face $1,000, Coupon 5%, Price $950, 10 years:
Current Yield = $50 / $950 = 5.26%
YTM ≈ 5.68%
Face $1,000, Coupon 6%, Price $1,050, 5 years:
Current Yield = $60 / $1,050 = 5.71%
YTM ≈ 4.84%
Frequently Asked Questions
What is Yield to Maturity (YTM)?
YTM is the total return anticipated on a bond if held until maturity. It accounts for the current market price, face value, coupon payments, and time to maturity. YTM is considered the most comprehensive measure of a bond's return.
What is the difference between current yield and YTM?
Current yield only considers the annual coupon payment relative to the current price. YTM additionally accounts for capital gains or losses if the bond is held to maturity, making it a more complete measure of return.