Bond Yield Calculator
Calculate bond yields with our comprehensive free calculator. Determine yield to maturity (YTM), current yield, and understand bond pricing for better fixed-income investment decisions.
Bond Cash Flow Timeline
Cash Flow Schedule
| Period | Coupon Payment | Principal | Total Cash Flow | Present Value |
|---|
Understanding Bond Yields
Measures annual income relative to current price
Includes coupon payments and capital gain/loss
When price is below face value, YTM > coupon rate
Key Features
How to Use This Calculator
Understanding Bond Yields
The Bond Yield Calculator helps fixed-income investors understand the true return on their bond investments. Bond yields can be measured in several ways, and understanding these metrics is crucial for comparing bonds and making investment decisions.
Current yield is the simplest measure: Annual Coupon Payment / Current Market Price × 100. If a bond pays ₹80 annually and trades at ₹1,000, the current yield is 8%. However, this ignores capital gains or losses at maturity.
Yield to Maturity (YTM) is the most comprehensive yield measure. It's the total return expected if the bond is held until maturity, including all coupon payments and the difference between the purchase price and face value. YTM is the internal rate of return of the bond.
Bond prices and yields move inversely. When interest rates rise, existing bond prices fall because new bonds offer higher yields. Understanding this relationship helps investors time their bond purchases and manage interest rate risk.
Duration measures a bond's sensitivity to interest rate changes. Longer duration means greater price sensitivity. This is important for portfolio management and hedging strategies.