Lab Calculator
Yield to maturity
Solve for the yield a bond pays from its price, coupon and maturity.
Price at each yield
How it works
The yield to maturity is the single discount rate that makes the value of every remaining coupon and the final repayment equal to the price you enter. There is no formula for it, so the tool solves for it numerically (bisection to a millionth of a percent). Current yield is the annual coupon over the price, ignoring the pull to par. The effective annual yield compounds the per-period rate over a year. The chart shows the price at each yield, with your price marked on the curve.
Assumptions
Priced on a coupon date (no accrued interest), coupons paid on schedule and the face value repaid in full, every cash flow discounted at the same rate. Maturity is rounded to whole coupon periods. A yield assumes coupons can be reinvested at that same yield, which rarely holds exactly.
For information and education only. Not investment advice.