Calculate yield to maturity for bonds.
Current market price of the bond
Please enter a valid bond price
Par value of the bond at maturity
Please enter a valid face value
Annual coupon rate as percentage of face value
Please enter a valid coupon rate
Time until bond matures
Please enter a valid maturity period
How often coupon payments are made
YTM is the total return anticipated if the bond is held until maturity.
It considers all coupon payments and capital gain/loss at maturity.
YTM assumes all coupons are reinvested at the same rate.
Yield to Maturity
Annualized total return if held to maturity
YTM < Coupon Rate (capital loss at maturity) YTM > Coupon Rate (capital gain at maturity) YTM = Coupon Rate (no capital gain/loss)
Method: Newton-Raphson iterative approximation
Iterations:
Precision: ±0.0001% (4 decimal places)
Convergence:
Investment Decision:
✅ Attractive yield - above typical market rates
⚠️ Moderate yield - compare with alternatives
❌ Low yield - consider other investments
Yield to Maturity (YTM) is the total return anticipated on a bond if held until it matures.
It's the discount rate that makes the present value of all bond payments equal to its current price.
YTM assumes all coupon payments are reinvested at the same rate as the YTM.
Current Yield: Only considers annual coupon income
YTM: Includes coupon income + capital gain/loss
Yield to Call: Assumes bond is called before maturity
Price < Face Value
YTM > Coupon Rate
YTM > Current Yield
Capital appreciation expected
Price = Face Value
YTM = Coupon Rate
YTM = Current Yield
No capital gain/loss
Price > Face Value
YTM < Coupon Rate
YTM < Current Yield
Capital loss expected
Where P = Current Price, C = Coupon Payment, F = Face Value, n = Periods
Solved iteratively using Newton-Raphson method for accuracy
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