Bond Yield Calculator
Calculate Current Yield, YTM, YTC, and bond duration metrics
Bond Parameters
Results
Enter bond parameters and click Calculate
About Bond Yield Calculator
Bond Yield Metrics
- Current Yield: Annual coupon payment divided by current market price. Simple measure that doesn't account for capital gains/losses.
- Yield to Maturity (YTM): Total return anticipated if bond is held until maturity. Accounts for all coupon payments and capital gain/loss. Most comprehensive yield measure.
- Yield to Call (YTC): Return if bond is called by issuer before maturity. Important for callable bonds trading at premium.
Duration Metrics
- Macaulay Duration: Weighted average time to receive bond's cash flows. Measured in years. Longer duration = more price sensitivity to interest rate changes.
- Modified Duration: Measures price sensitivity to yield changes. A modified duration of 5 means a 1% yield increase causes ~5% price decrease.
Bond Pricing Relationships
- • Discount Bond: Market Price < Face Value, YTM > Coupon Rate
- • Premium Bond: Market Price > Face Value, YTM < Coupon Rate
- • Par Bond: Market Price = Face Value, YTM = Coupon Rate
- • Bond prices and yields move inversely
- • Longer maturity bonds are more sensitive to rate changes
Use Cases
- • Comparing yields across different bonds
- • Evaluating bond investment returns
- • Portfolio duration management
- • Interest rate risk assessment
- • Fixed income investment decisions
- • Bond trading and pricing analysis
Important Notes
- • YTM assumes all coupons are reinvested at the YTM rate
- • Calculations assume no default risk
- • Tax implications are not included
- • Accrued interest is not factored in
- • Duration is most accurate for small yield changes
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