Bond yield calculator
What does this bond really yield?
Work out the current yield and yield to maturity of a bond.
₹
₹100₹10 L
%
0%20%
₹
₹50₹15 L
yrs
1 yrs40 yrs
Coupon frequency
Yield to maturity (YTM)
8.24%
Bought at a discount
Current yield
7.73%
Annual coupon
₹75
Total gain to maturity
₹405
YTM assumes you hold the bond to maturity, every coupon is paid on time, and coupons are reinvested at the same yield. Check the issuer's credit rating before you invest.
Illustrative only, based on the rates you enter; returns are not guaranteed. Mutual fund investments are subject to market risks, read all scheme related documents carefully.
How to use it
- 1Enter the face value, the coupon rate and how often coupons are paid.
- 2Enter the price you would pay and the years left to maturity.
- 3Compare the YTM with FD rates or other bonds of similar risk.
The formula
Current yield = annual coupon / price. YTM is the rate y at which Σ C/(1 + y/f)ᵏ + F/(1 + y/f)ᴺ equals the price.
Questions
If you buy below face value you also gain the discount at maturity, so YTM is higher than the coupon. If you pay a premium, YTM is lower.
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