Bond yield calculator
Yield to maturity and current yield from a bond's price, or the price for the yield you want.
- ๐บ๐ธ US federal & state rules
- See sources
Yield to maturity
4.759%
Buying at $950.00 and holding 8 years to maturity
- Current yield
- 4.211%
- Yearly coupon income
- $40.00
- Discount
- $50.00
- Modified duration
- 6.73 years
This is an example. Enter your numbers above and press the button to see your own result.
- A 1 point rise in rates would lower the price by about 6.73% (modified duration).
- YTM assumes you hold to maturity, the issuer pays every coupon, and coupons are reinvested at the same yield. Callable bonds may be redeemed early.
Show the math
| Current yield | $40.00 รท $950.00 = 4.211% |
|---|---|
| Cash you receive | $40.00 ร 8 years + $1,000.00 = $1,320.00 |
| YTM | The yearly rate (compounded 2 times a year) that makes those payments worth $950.00 today |
What to do next
How it works
The bond pays the coupon rate times face value each year, split into equal payments, and returns the face value at maturity. Yield to maturity is the yearly rate, compounded at the coupon frequency, that discounts those payments back to the price you enter.
In price mode, the calculator discounts the same payments at the yield you want, which tells you the most you can pay to earn it.
Things to keep in mind
Bond quotes are usually a percentage of face value and leave out accrued interest. YTM assumes no default and no early call. For a callable bond, also check the yield to call.
Sources
- TreasuryDirect, Treasury notes (interest paid every six months)Checked 2026-10-19
Frequently asked questions
What is the difference between current yield and yield to maturity?
Current yield is the yearly coupon divided by the price. YTM also counts the gain or loss from the price you pay up to the face value you get back. A 5% coupon bought at $925.61 has a 5.40% current yield but a 6% YTM over 10 years.
How do I calculate yield to maturity?
YTM is the rate that makes all coupons and the final face value, discounted back, equal the price. There is no simple closed formula, so the calculator solves for it step by step.
Why do bond prices fall when rates rise?
A fixed coupon is worth less when new bonds pay more. Duration estimates the size: a bond with a 7-year modified duration drops about 7% in price if yields rise 1 point.
Do US bonds pay interest twice a year?
Most do. Treasury notes and bonds and most corporate bonds pay coupons every six months, so a 4% $1,000 bond pays $20 twice a year.