Bond Yield Calculator — Yield to Maturity from Price
Who this is for: For finance students working bond problems (and BA II Plus bond-worksheet refugees) who want the YTM behind a quoted price, with the assumptions stated rather than hidden.
Not the right tool for: Callable or putable bonds — YTM assumes no early redemption; yield-to-call is a different computation · Credit, liquidity, or tax analysis — this prices default-free cash flows pre-tax, nothing more
Enter a bond's price and coupon — get the yield to maturity, solved numerically, plus current yield and the premium/discount read.
Quick answer: YTM is the discount rate that equates a bond's price to the present value of its coupons and principal. A 3-year, 5% annual-coupon, $1,000-face bond priced at $973.27 has a YTM of exactly 6.00% — price below face always means yield above coupon. Current yield on the same bond is 5.14%.
| Definition | YTM: the yield that prices the bond exactly at the given price |
|---|---|
| Worked example | 3-year, 5% annual coupon, face $1,000, price $973.27 → YTM 6.00% |
| Current yield | $50 / $973.27 = 5.14% |
| Frequencies | Annual, semiannual, quarterly |
| Compiled | October 2026 |
What yield to maturity tells you
YTM is the single discount rate that makes the bond's price equal to the present value of its coupons plus principal — the bond's version of IRR. Buy a 3-year, 5% annual-coupon bond at $973.27 (face $1,000) and your YTM is exactly 6.00%: the $26.73 discount is the extra yield that pulls a 5% coupon up to a 6% total return if you hold to maturity. YTM has no closed form, so it is solved numerically — this page scans and bisects the price equation, same as your calculator. Alongside it sits the humbler current yield: annual coupon divided by price ($50 / $973.27 = 5.14%), which measures income only and ignores the discount you'll collect at maturity. The read every examiner wants: price below face means the yield exceeds the coupon; price above face means it's lower.
Common uses
- Finding the YTM behind a quoted clean price on a coupon date
- Homework: verifying that a solved price implies the stated yield
- Comparing current yield (income) against YTM (total return) on the same bond
- Understanding premium vs discount through the coupon-yield spread
Where these numbers come from
All results are computed in your browser from the standard closed-form formulas (and a numerical root-finder where no closed form exists — rates, IRR, YTM). Formulas follow the ordinary-annuity (END) convention used by the BA II Plus and HP 12C. Educational reference only — not investment, tax, or accounting advice.