Calculate yield to maturity manually

value (current value). This makes calculating the yield to maturity of a zero coupon bond straight-forward:Let's take the following bond as an example:Current Price: $Par Value: $Years to Maturity: 3Annual Coupon Rate: 0%Coupon Frequency: 0x a YearPrice =(Present Value / Face Value) ^ (1/n) - 1 =( / ) ^ (1 / 3) - 1= ^.  · In the yield to maturity calculator, you can choose from six different frequencies, from annually to daily. In our example, Bond A has a coupon rate of 5% and an annual frequency. This means that the bond will pay $1, * 5% = $50 as interest each year. Determine the years to maturity. The n is the number of years from now until the bond matures. To calculate the actual yield to maturity requires trial and error by putting rates into the present value of a bond formula until P, or Price, matches the actual price of the bond. Some financial calculators and computer programs can be used to calculate the yield to maturity.

Calculate Yield To Maturity For Bonds. There are many different ways to measure the returns of investments. For bondholders, one important consideration when making a intelligent bond investment is the Yield to Maturity for the bond.. The definition of yield to maturity, or YTM, is the return the investor would receive, including all interest payments, if the bond where to be held until it. Is there a way to calculate yield-to-maturity using just the payments (not all equal) with just a simple handheld calculator and without using Excel? calculation. Share. Improve this question. Follow edited Jun 23 '11 at Chris W. Rea. k 16 You cannot compute the interest rate by hand using the exact equation for yield to maturity (YTM), as that equation is too complex. Online bond calculators have algorithms for solving the exact equation. However, you can calculate a close approximation manually using a simplified equation.

In the yield to maturity calculator, you can choose from six different frequencies, from annually to daily. In our example, Bond A has a coupon rate of 5% and an annual frequency. This means that the bond will pay $1, * 5% = $50 as interest each year. Determine the years to maturity. The n is the number of years from now until the bond matures. F = the face value, or the full value of the bond. P = the price the investor paid for the bond. n = the number of years to maturity. Calculate the approximate yield to maturity. Suppose you purchased a $1, for $ The interest is 10 percent, and it will mature in 10 years. You can use this Bond Yield to Maturity Calculator to calculate the bond yield to maturity based on the current bond price, the face value of the bond, the number of years to maturity, and the coupon rate. It also calculates the current yield of a bond. Fill in the form below and click the "Calculate" button to see the results.