Bond Yield to Maturity (YTM) Calculator

What YTM Captures

YTM combines two return components: current yield (coupon / price) plus capital gain/loss (face - price) / time. A bond bought at discount earns coupon income PLUS appreciation back to face value. A premium bond earns coupon income MINUS depreciation. YTM normalizes these into one annual rate.

Limitations Of YTM

Assumes coupons reinvested at YTM rate (often unrealistic). Assumes held to maturity (not sold early). Does not adjust for taxes or transaction costs. For municipal bonds, calculate tax-equivalent yield. For zero-coupon bonds, YTM equals the only return component.

Comparing Bonds With Different Coupons

Bond A: 6% coupon at $1,050 price. Bond B: 4% coupon at $950 price. Bond C: 5% coupon at $1,000 price. All have 5-year maturity. YTM normalizes — Bond A has 4.85% YTM, Bond B has 5.18% YTM, Bond C has 5.00% YTM. Bond B wins despite lower coupon because of price discount.

Yield to Maturity Calculator — How to Read Today's Treasury Yields Against YTM

A bond yield to maturity calculator only matters if you have a benchmark. Per U.S. Treasury daily yield-curve rates, the risk-free curve is the floor for any other bond YTM. Compute your bond's YTM here, then subtract the matched-maturity Treasury yield — the difference is your credit spread. Investment-grade corporate bonds typically yield 80-180 basis points (0.8-1.8%) above Treasuries; high-yield (junk) bonds 350-800 bps. If your calculated YTM is below the Treasury benchmark, you are taking credit risk for zero compensation. If it is more than 500 bps above Treasuries on a supposedly investment-grade bond, the market is pricing in default risk you may not be aware of. Always pair this calculator with the daily Treasury curve before buying.

Sources: SEC Investor.gov Bond Yield Education, U.S. Treasury Daily Yield Curve. Last updated: 2026-06-14.