Yield to maturity is an assumptions-based formula, which means it’s prone to error, volatility and other unpredicted situations. For example, the bond holder may not reinvest all coupon payments.

Yield to maturity (YTM) is the annual expected return of a bond if held until maturity, also referred to as book yield.

If a bond is "callable," it means that the issuer has the right to buy the bond back at a predetermined date before its full maturity date.

How to Use Excel to Calculate a Bond's Yield to Call. Bonds are investment vehicles that make regular coupon payments until maturity, at which time the bond's face value is paid. If a bond is ...

Calculating the yield to maturity of a specific bond might prove instructive, so let's do just that. The iShares 7-10 Year Treasury Bond ETF (IEF) is a medium-term treasury bond index ETF.

The formula for modified duration tells you the change in the value of a bond in relation to a change in its yield to maturity. In Excel, the formula is built into the MDURATION function. Follow ...

So we can calculate its current interest rate like this: If the bond is held to maturity, five years of interest would produce a 24.25% total yield.

To calculate interest expense for the next semiannual payment, we subtract the amount of amortization from the bond's carrying value and multiply the new carrying value by half the yield to maturity.

To calculate the break-even interest rate, you need to know the yields to maturity, and the number of years left before the bonds mature. Take each bond's yield to maturity, add one to the yield ...

Money market yield measures the annualized return on short-term, low-risk investments like Treasury bills and commercial paper. It helps investors compare the earnings potential of different money ...

Here's how to calculate the maturity value of a note, and a warning about a quirk in commercial bankers' calendars.