How to use this calculator
- Enter bond face amount redeemed at maturity, purchase price at coupon boundary, nominal annual coupon rate (%), whole years to redemption, coupons per year.
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Assumptions and limitations
Coupon-boundary settlement, exact equal periods and promised payments. Redemption is at face value. Yield to call, call premiums, default and accrued interest are not modeled.
Worked example
A 1,000 face bond priced at 1,000 with 5% nominal coupon pays nominal YTM 5%; with semiannual coupons its effective annual yield is 5.0625%.
What the result means
Estimate fixed-cash-flow yield from an entered price rather than assuming coupon rate equals return.
Common questions
How is the calculation performed?
Solve the periodic yield that equates entered price with discounted coupons and redemption, then annualize nominally and effectively.
What does the model leave out?
Coupon-boundary settlement, exact equal periods and promised payments. Redemption is at face value. Yield to call, call premiums, default and accrued interest are not modeled.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.
Background reference: openstax.org — financial method. FinanceMath implements its own calculator.