Bond Yield to Maturity (BYTM)

Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until it matures..

Estimated Yield to Maturity Formula :

( (Annual Interest Payment) + ( (Face Value - Current Price) / (Years to Maturity) ) ) / ( ( Face Value + Current Price ) / 2 )

Exact Yield to Maturity Formula :

Price = Coupon Payment / ( 1 + rate) ^ 1 + Coupon Payment / ( 1 + rate) ^ 2 ... + Final Coupon Payment + Face Value / ( 1 + rate) ^ n

Yield to Maturity of Zero Coupon Bonds Formula :

Price = (Present Value / Face Value) ^ (1/n) - 1