Bond Yield Calculator
Calculate bond current yield, yield to maturity (YTM) and total return for any bond.
Enter Details
Results
Related Calculators
Frequently Asked Questions
What is yield to maturity (YTM)?
YTM is the total annualised return you earn if you buy a bond at its current price and hold it until maturity, assuming all coupon payments are reinvested at the same rate. It is the most comprehensive measure of a bond's return and accounts for both the coupon income and any capital gain or loss.
Why do bond prices fall when interest rates rise?
Bond prices and interest rates move inversely. When new bonds offer higher coupons, existing lower-coupon bonds become less attractive and must fall in price until their yield matches the market. A 1% rise in rates causes a roughly 1% drop per year of duration — a 10-year bond falls about 8-10%.
What is the difference between current yield and YTM?
Current yield = annual coupon ÷ market price. It ignores the capital gain or loss at maturity. YTM includes that gain/loss spread over the remaining years. If you buy a $1,000 par bond for $950 with a 5% coupon, current yield is 5.26% but YTM is higher because you also gain $50 at maturity.