Bond Calculator — Yield to Maturity (YTM) & Pricing
Calculate Yield to Maturity for any bond from face value, coupon rate, market price, and years to maturity. Free, instant, and accurate.
Bond Calculator (YTM)
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Current Yield (Annual Coupon ÷ Market Price)
5.2632%
Annual Coupon Income (Semi-Annual payments of $25.00)
▲ $50.00
Total Coupon Income Over Life
▲ $500.00
Capital Gain at Maturity
▲ +$50.00
Total Absolute Return (Coupons + Capital)
▲ $550.00
YTM vs. Coupon Rate
YTM (5.6617%) > Coupon (5.0000%) — Discount bond confirms higher effective yield
Scenario Comparison
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Market Price
$950.00
Discount
Par Value
$1,000.00
Redemption value
Coupon
5.00%
$25.00 semi-annually
Discount Bond — Why YTM > Coupon Rate
You pay $950.00 but receive $1,000.00 at maturity — a $50.00 capital gain. Combined with coupons, your YTM (5.6617%) exceeds the stated 5.00% coupon rate.
Price-Yield Curve
Price-Yield curve — Blue dot = current market price at current YTM. Dashed = par value.
Simplified Cash Flow Timeline
YTM Approximation Formula (Used in Finance Courses)
YTM ≈ (Annual Coupon + (Face − Price) / Years)
÷ ((Face + Price) / 2)
≈ ($50.00 + ($1,000.00 − $950.00) / 10) / (($1,000.00 + $950.00) / 2)
This approximation is commonly tested on finance exams. This calculator solves the exact YTM using binary search iteration for precision to 4 decimal places.
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