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Bond Yield Calculator
YTM from market price — via bisection.
Enter values to see your result
Frequently asked questions
YTM vs Current Yield?
Current yield uses today's price ignoring maturity gain/loss. YTM includes both coupon and capital change to par. YTM is the correct comparison metric.
Why do discount bonds have higher YTM?
You pay below par AND receive par at maturity — capital gain adds to YTM. Current yield also rises (coupon / lower price).
Can YTM be negative?
Yes — if you pay way above face value and low coupon isn't enough. Happened in European government bonds 2015-2021.
Reinvestment assumption?
YTM assumes each coupon is reinvested AT YTM rate. Unrealistic — actual return = realised yield, depends on where coupons are actually invested.