Yield to maturity YTM Calculator

Written by:Abraham A.
Location:Bonds

Finance.ThinkAndDone.com provides you online and windows calculators to calculate yield to maturity on bonds when you provide the bond's maturity value, market price, coupon rate, and years till maturity. The bond yield is calculated using an iterative technique known as Newton Raphson method. It makes use of an TVM equation used in Excel to find the bond's market rate of return otherwise known as YTM. This method will find the exact yield whereas certain YTM calculators on the world wide web only offer an approximation of the original YTM.

Location: Bonds

YTM Calculator

Developed by:Emma A.
Location:Financial Calculators
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Results

YTM = 3.18%
Annual YTM = 6.36%

Input Data

Please enter the maturity value of the bond (debt) 
Please enter the market price of the bond (debt) 
Please enter the coupon rate  
Please enter the years to maturity  

Instructions

You have to provide certain details about the bond for which you have find the yield to maturity. Assuming we have a 5% semiannual $1000 bond with market price of $900 having 10 years to maturity.

  1. You have to key in 1000 as par value of the bond
  2. You have to key in 900 as the market price
  3. You have to key in 5 as the coupon rate
  4. You have to key in 10 as years to maturity
  5. You have to select the frequency of interest payments
Location: Financial Calculators