This calculator solves a promised coupon/redemption ledger. It reports nominal annual YTM, effective annual yield and current yield separately, with the exact price basis and numerical residual. A mathematical yield is not a forecast or guarantee.
How the Yield to Maturity Calculator works
The shared Bond Yield engine discounts every regular coupon and final redemption to dirty settlement price. Bisection in log(1 + periodic yield) permits signed yields above the periodic −100% boundary. A result is shown only when its repricing residual passes validation. No convergence guarantee is made outside the representable numerical range.
Inputs and what they mean
In the short form, the next coupon is one full period away and years × frequency must be a whole number. The optional dated mode generates regular coupons backward from maturity, preserves end-of-month dates and uses actual elapsed days within the coupon interval. Clean price plus accrued coupon equals dirty price. This is a regular-schedule convention, not a general day-count or odd-coupon engine.
Limits and edge cases
Nominal annual YTM is m × periodic yield; effective annual yield is (1 + periodic yield)^m − 1. Current yield is annual coupon / clean price. Realized return depends on receiving payments, sale timing and reinvestment rates. Zero maturity shows immediate redemption without annualization. The model excludes tax, default, calls, holidays and irregular coupons; use Bond Yield for call/duration analysis and verify actual security terms separately.