Yield to Maturity Calculator
Find the internal rate of return for a bond held to maturity.
$
$
%
Yield to Maturity
0.00%
Current Yield
0.00%
Total Coupons
$0
Capital Gain/Loss
$0
Understanding YTM
YTM is the discount rate that makes the present value of all future cash flows (coupons + face value) equal to the current price.
Price = Σ[C/(1+YTM/n)^t] + F/(1+YTM/n)^(n×years) Where C = coupon payment, F = face value, n = payments per year
Foire aux questions
What is Yield to Maturity?
YTM is the total return you'll receive if you hold a bond until maturity and reinvest all coupons at the same rate. It's the bond's internal rate of return.
How is YTM different from current yield?
Current yield only considers annual coupon vs price. YTM also accounts for capital gain/loss at maturity and the time value of money.
Is YTM guaranteed?
No. YTM assumes you hold to maturity and reinvest coupons at the same rate. Actual returns may differ due to reinvestment risk.