Bond Yield Calculator
Find a bond’s current yield and yield to maturity from its price, coupon, time to maturity and redemption value.
Bond Yield Calculator
Yield to Maturity (YTM)
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Current Yield
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Approximate YTM
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Effective Annual Yield
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Annual Coupon Income
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Trading At
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Assumptions & method
- Current yield = annual coupon income ÷ market price. It ignores the gain or loss when the bond is redeemed and the time left to maturity.
- Yield to maturity (YTM) is the single discount rate that makes the present value of all remaining coupons plus the redemption value equal to the market price. It is solved numerically (bisection) and quoted as a nominal annual rate = periodic yield × coupons per year. The effective annual yield is (1 + periodic yield)frequency − 1.
- Approximate YTM = (annual coupon + (redemption − price) ÷ years) ÷ ((redemption + price) ÷ 2). It is a quick shortcut and is least accurate for long maturities or large premiums and discounts.
- Coupon = face value × coupon rate ÷ frequency. Years × frequency must be a whole number of coupon periods and the next coupon is assumed a full period away (no accrued interest). Assumes no default, no early call and coupons reinvested at the YTM. Taxes and fees are not included.
Results are estimates based on the figures you enter, not guarantees of future performance. Figures are shown in ₹ for consistency across this site; the maths works for any currency.
Cash Flow Schedule (discounted at YTM)
Current yield vs yield to maturity
A bond’s coupon rate is fixed on its face value, but its market price moves. That is why a single “bond yield” can mean different things. Current yield looks only at the annual coupon relative to price. Yield to maturity (YTM) goes further and includes the gain or loss you lock in by holding to redemption, plus the timing of every payment.
Because YTM has no closed-form solution, it is found by trial: this calculator searches for the rate at which the discounted cash flows equal the price. The chart shows the bond’s price curve against yield. It slopes down and curves, which is why rising yields hurt prices and why the shortcut approximation drifts from the exact figure.