Bond Yield Calculator
Yield to maturity, current yield, duration, and tax-equivalent yield for any bond.
A bond yield calculatorfinds the yield to maturity (YTM) of a bond from its price, face value, coupon rate and years to maturity — the single annual rate that equates all future coupon and principal payments to today's price. It also reports current yield, total return, duration, and tax-adjusted yield.
Bond Yield Calculator
The Bond
Based on your results — what to do next:
See what this yield compounds into
A 5.146% yield reinvested for 10 years can grow far beyond the $500.00 simple total return.
Fit bonds into your retirement mix
Bonds paying $45.00/yr in coupons can anchor the income side of a retirement plan.
Is your real yield positive?
Subtract inflation from your 5.146% YTM to see what the bond truly earns in purchasing power.
How Bond Yield to Maturity Is Calculated
① Bond price
P = C × [1 − (1 + y)−n] ÷ y + F ÷ (1 + y)n
C = coupon per period, y = yield per period, n = periods, F = face value
② Yield to maturity
Solve for y such that P equals the market price
Found numerically by iteration (bisection) — there is no closed form
③ Current yield and duration
Current yield = Annual coupon ÷ Price; Modified duration = Macaulay ÷ (1 + y)
Duration estimates price change for a 1% move in yields
| Variable | Meaning | Typical Value |
|---|---|---|
| F | Face (par) value | Typically $1,000 |
| P | Market price | Below par = discount |
| C | Coupon payment | Face × coupon rate ÷ frequency |
| n | Number of coupon periods | Years × frequency |
Worked Example — $1,000 bond bought at $950, 4.5% coupon, 10 years, semiannual
- Annual coupon: $45; current yield = 45 ÷ 950 = 4.74%
- Yield to maturity: ≈ 5.15% (the $50 discount adds to your return)
- Total coupons over 10 years: $450, plus $50 gain at maturity = $500
- At a 24% tax bracket the after-tax YTM is roughly 3.9%
💡 Pro-Tip
Compare YTM, not coupon. A bond with a low coupon bought at a deep discount can out-yield a high-coupon bond bought at a premium. For tax-exempt municipal bonds, compare the taxable-equivalent yield, which is the muni yield divided by (1 − your tax rate).
Bond Yield Calculator FAQ
What is yield to maturity?
YTM is the total annualized return you earn if you hold a bond until it matures and reinvest every coupon at the same yield.
What is the difference between current yield and YTM?
Current yield only divides annual coupon income by price. YTM also counts the gain or loss between price and face value at maturity and the timing of cash flows.
Why do bond prices fall when rates rise?
New bonds pay higher coupons, so existing lower-coupon bonds must sell at a discount until their yield matches the market. Longer duration means bigger price swings.
What is duration?
Duration measures a bond's sensitivity to interest rates. A modified duration of 8 means the price drops about 8% if yields rise by 1 percentage point.