Bond Yield

The Bond Yield calculation lets you calculate the current yield, the average yield and the yield to maturity of a bond.

Input

• market quote
• settlement date
• redemption date
• annual, semiannual or quarterly coupon rate
• face value
• redemption value

Results

• market price on the settlement day
• current yield
• average yield
• yield to maturity

Example

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A $1.000 bond, redeemable at par on December 15, 2006, has 11 % coupons payable semiannually.

If the bond is quoted at 108 on May 2, 2003, what is the yield to maturity?

Input Market quote: 108
  Settlement date [mm/dd/yyyy]: 05/02/2003
  Redemption date [mm/dd/yyyy]: 12/15/2006
  Semiannual coupon rate: 11
  Face value: 1,000
  Redemption value: 1,000
     
Result Yield to maturity: 8.341 %

Answer: 8.341 %.

 

Related topics

Bond features
Bond pricing issues
Bond yield measures
Zero-Coupon Bond Yield