Use this Yield to Maturity Calculator from calculatorbank.com to quickly find a bond’s true return and make smarter investment choices.
Yield to Maturity Calculator
Calculate bond yield, price sensitivity, and cash flow projections
Yield to Maturity
Current Yield
Macaulay Duration
Modified Duration
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Understanding Yield to Maturity
Yield to Maturity (YTM)
The total return anticipated on a bond if held until maturity. YTM accounts for all coupon payments and the difference between purchase price and face value. It’s the internal rate of return (IRR) of the bond.
Current Yield
Annual coupon payment divided by current market price. This is a simpler measure that doesn’t account for capital gains or losses at maturity.
Macaulay Duration
Weighted average time until a bond’s cash flows are received, measured in years. It’s used to assess bond price sensitivity to interest rate changes.
Modified Duration
Measures the percentage change in price for a 1% change in yield. Higher modified duration means greater price sensitivity to interest rate changes.
YTM Formula
Bond Price = C × [1 – (1 + YTM)-n] / YTM + F / (1 + YTM)n
Where C = coupon payment, F = face value, n = years to maturity
Callable Bonds
Bonds that can be redeemed by the issuer before maturity. Callable bonds typically offer higher yields to compensate investors for call risk.