Bond Yield to Maturity Calculator

YTM is the total annualized return you'll earn if you buy a bond now and hold it to maturity, assuming all coupon payments are reinvested at YTM. It accounts for purchase price, face value, coupon rate, and time to maturity. YTM is the standard yield measure for comparing bonds with different prices, coupons, and maturities.

Current yield = annual coupon ÷ current market price. It ignores the gain or loss from holding the bond to maturity. A bond bought below face value has a YTM higher than current yield (you earn the discount); above face value, YTM is lower. For a bond bought at par, YTM equals coupon rate equals current yield.

A bond's coupon payments are fixed. When market interest rates rise, new bonds offer higher coupons, so existing bonds with lower coupons must drop in price to deliver a competitive yield. Conversely, falling rates push existing bond prices up. Longer-maturity bonds are more sensitive to rate changes - a concept called duration.

10-year US Treasury yields have ranged about 3.6%–4.8% in 2024–2025, providing a benchmark "risk-free" return. Investment-grade corporate bonds add 0.8%–1.5% spread; high-yield ("junk") bonds add 3%–5%+. Compare any bond yield to Treasuries of similar maturity to judge whether the credit spread compensates for the extra risk.