Bond Yield Calculator
Current yield and yield to maturity (YTM).
Your Bond
Current yield
Yield to maturity (YTM)
Annual coupon
Premium / discount
YTM is solved iteratively (bisection) so the present value of all coupons plus par equals the market price.
How to Use This Calculator
2. Enter the current market price and years to maturity.
3. Choose how often coupons are paid.
Current yield and yield to maturity (YTM) are computed instantly.
Calculation Method
YTM is solved iteratively (bisection): the discount rate that makes the present value of all coupon payments plus the par value equal the market price. Annualized by the coupon frequency.
Source: Bond pricing equation; YTM via numerical root-finding.
Discount bond
$1,000 · 5% · price $950 · 10 yr
YTM ≈ 5.65%
Premium bond
$1,000 · 5% · price $1,050 · 10 yr
YTM ≈ 4.39%
At par
price = face
YTM ≈ coupon rate
Frequently Asked Questions
What is current yield?
The annual coupon payment divided by the bond’s current market price — a quick income measure that ignores capital gain/loss at maturity.
What is yield to maturity (YTM)?
The total annualized return if you hold the bond to maturity, accounting for coupons plus any gain or loss versus the price you paid.
Why is YTM solved iteratively?
The bond price equation cannot be algebraically solved for yield, so a numerical method (here, bisection) converges on the rate that matches the price.
Why is YTM below the coupon for a premium bond?
You paid more than par, so the eventual return to par is a capital loss that drags total return below the coupon rate.
Does this include taxes or call features?
No. It assumes a plain bullet bond held to maturity, pre-tax. Callable bonds require yield-to-call analysis.
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Last updated: May 24, 2026