Bond Yield to Maturity (YTM) Calculator
Calculate bond yield to maturity from price, face value, coupon rate, and time to maturity.
Find the true annualized return of any bond investment.
Yield to Maturity (YTM)
Yield to Maturity Approximation
YTM ≈ [C + (F − P) / n] ÷ [(F + P) / 2]
Where:
- C = annual coupon payment
- F = face (par) value
- P = current market price
- n = years to maturity
YTM is the total annualized return if you hold the bond to maturity and reinvest all coupon payments at the same rate.
Key concepts:
- If Price < Face Value → bond trades at a discount (YTM > coupon rate)
- If Price > Face Value → bond trades at a premium (YTM < coupon rate)
- If Price = Face Value → bond trades at par (YTM = coupon rate)