The Bond Yield to Maturity Calculator is used to calculate the bond yield to maturity.

The bond yield to maturity (abbreviated as Bond YTM) is the internal rate of return earned by an investor who buys the bond today at the market price, assuming that the bond will be held until maturity and that all coupon and principal payments will be made on schedule.

The equation for Yield to Maturity (YTM) is as follows, where c is the annual coupon payment, Y is the number of years to maturity, r is the YTM, B is the par value of the bond and P is the price of the bond:

c × (1 + r)^{-1} + c × (1 + r)^{-2} + . . . + c × (1 + r)^{-Y} + B × (1 + r)^{-Y} = P