Yield-to-maturity solver
From price to yield by bisection.
Interactive: yield-to-maturity solverMedium
Quotes come as prices; comparisons need yields. This solves the discount rate at which the bond's cash flows equal its price.
- Yield to maturity
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- Current yield
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- Trading status
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Solved by bisection on the standard price–yield relation. Assumes coupons are reinvested at the YTM — the assumption everyone states and no one achieves.
The idea behind it
This calculator belongs to Fixed Income, where the mechanism it computes is explained step by step, with the formula, what each input means and where the simple model stops being right. Everything is computed in your browser; nothing you type is sent anywhere.
Instruments it applies to
- High-Yield Bond — Bonds from borrowers the rating agencies doubt — priced somewhere between fixed income and equity, behaving like both.
More calculators from Fixed Income
- Bond price, duration & convexity — the full price–yield toolkit.
- Tax-equivalent yield — comparing tax-exempt and taxable bonds.
- Loan & mortgage amortisation — payment, total interest, the first-payment split.
- Bond ladder planner — rungs, average yield, annual income.
- Accrued interest & dirty price — what you actually pay.
- Real return after inflation — Fisher's equation, exactly.