Bond Yield Calculator

YTM is the total annualized return you'd earn if you bought the bond today and held it until maturity, receiving all coupon payments and the face value at maturity. It's solved iteratively since there's no simple algebraic formula — it's the discount rate that makes the bond's cash flows equal its current price.

Current yield only divides the annual coupon by the current price (a snapshot), ignoring any gain or loss you'll realize at maturity. YTM accounts for the full picture — coupon income plus the capital gain (if bought below face value) or loss (if bought above).

If market interest rates have risen since the bond was issued, its fixed coupon becomes less attractive, so its price falls below face value to compensate — the buyer's YTM ends up higher than the stated coupon rate to reflect current market rates.

Many bonds are callable — the issuer can redeem them early at a set call price. YTC calculates your yield assuming the bond is called at the earliest date instead of held to maturity. Yield to worst is simply the lower of YTM and YTC — the more conservative figure to plan around.