Yield to maturity for any bond — annual and per-period yield, current yield, coupon income and total gain.
How to use this tool
Face value is what the bond repays at maturity; price is what you pay for it today.
The annual coupon rate and the years left until maturity, plus how often coupons are paid.
The big number is the annualised yield to maturity — the return if you hold to maturity and reinvest coupons at that rate.
Current yield is just annual coupon divided by price; YTM also counts the gain or loss between price and face value.
Formula & worked example
Worked example: a 1,000 bond paying 5% semi-annually, maturing in 10 years, priced at 950. The coupon is 25 every six months for 20 periods plus 1,000 at the end; solving gives a per-period yield of about 2.78%, so YTM ≈ 5.56% per year — above the 5% coupon because you bought below face value.
Limitations — read this before you rely on it
YTM assumes you hold to maturity, the issuer never defaults, and every coupon is reinvested at exactly the YTM — in reality reinvestment rates differ, so realised return will not match YTM exactly. Prices here ignore accrued interest, taxes, fees and callable features.
Frequently asked questions
The total annualised return you earn if you buy a bond at today's price, hold it until it matures, and reinvest every coupon at the same rate. It combines coupon income with the price-to-face-value gain or loss.
Because the bond was bought below face value (950 for a 1,000 bond). You collect the coupons and an extra 50 at maturity, so the total return beats the coupon rate alone. Buy above face value and YTM falls below the coupon rate.
Current yield is annual coupon divided by price — a quick snapshot that ignores maturity. YTM adds the capital gain or loss at maturity and the time value of money, so it is the better comparison between bonds.
YTM equals the coupon rate exactly. Paying par means there is no capital gain or loss at maturity, so the coupons alone set the return.
No. YTM assumes every promised payment arrives. Riskier bonds trade at lower prices (higher YTM) precisely because the market doubts full repayment — a high YTM can be a warning, not a bargain.