The Yield to Maturity calculation (YTM) measures the anticipated return from a bond if held until the end of its lifetime e.g. until it matures. YTM is expressed as an annual rate and accounts for what all future coupon payments of the bond are worth today at their Present Value (PV). The YTM calculator is used to calculate the Yield to Maturity of a bond taking into consideration its price now. The YTM calculations are a complex financial system but they give a better picture of what could be earned from bonds with different maturity and coupons.
How to Use the Bonds Yield to Maturity Calculator
- The YTM Calculator consists of two parts.
- Values needed: Par Value, Maturity Value, Coupon Rate, Coupon Payment, and Months till Maturity
- Result: Total Yield, Yield to Maturity (YTM), Annualized Yield, and Percentage Yield
- First, you need to fill in the values needed and to choose the type of coupon payment (Yearly, Half-Yearly, Quarterly, and Monthly)
- After you fill in the needed values, you need to click on “Submit”.
- The YTM calculations will be performed automatically and you will get the results in the lower part of the widget.
- If you want to perform a new Yield to Maturity calculation, click on “Reset” to empty all the fields.
Troubles with the YTM Calculator?
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