Irish Calculators
Saving & investing

Bond Yield to Maturity and Zero-Coupon Calculator

Solve the yield that matches the price paid to the bond's remaining contractual cash flows. Regular bonds show a nominal yield at coupon frequency, while zero-coupon mode uses an annual effective yield.

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Your numbers

%
Contractual coupon, not market yield.
Anchor for the regular coupon schedule. A month-end anchor keeps all coupon dates at month-end; otherwise the day is preserved, clipped when needed.
With more than one payment both modes compound. Check the convention used by the bond quote.
Display currency only. Convert all inputs to this currency before calculation.
Your figures stay on this device.

How the calculation works

Yield to maturity is the discount rate that matches a bond's supplied purchase price with its remaining contractual payments. This tool has separate regular-coupon and zero-coupon modes because their timing and rate presentations differ.

Find y such that the discounted value of coupons and face redemption equals dirty price. The displayed nominal annual yield compounds at coupon frequency.

  1. Build the relevant payment schedule

    Regular mode creates coupons and principal redemption on the contractual grid. Zero-coupon mode uses only the redemption at maturity.

  2. Put price and payments on one basis

    Accrued coupon is included where required so the solver compares the actual modelled settlement value with discounted receipts.

  3. Solve the rate

    The rate is adjusted until the discounted payments match the supplied price within the model's tolerance. The displayed yield convention is labelled so different outputs are not treated as identical quotes.

Worked example: Check Yield to maturity (nominal annual)

Sample inputs demonstrate the method. They are not a forecast or product offer.

The first example pays 1,000 for a bond returning face value plus a 5% coupon one year later. Discounting the 1,050 receipt at 5% gives 1,000, so the solved nominal annual yield is 5%.

Bond type
Regular coupon bond
Face value
1000
Annual coupon rate (%)
5
Coupons per year
Annual
Settlement date
2026-01-01
Next coupon date
2027-01-01
Maturity date
2027-01-01
Discounting convention
Compound fractional coupon periods
Price for the whole face value
1000
Price convention
Clean: excludes accrued coupon
Currency for all amounts
Euro (EUR)

Expected result

Yield to maturity (nominal annual)
5%
Worked example: Check Yield to maturity (nominal annual)

Sample inputs demonstrate the method. They are not a forecast or product offer.

Bond type
Regular coupon bond
Face value
1000
Annual coupon rate (%)
0
Coupons per year
Annual
Settlement date
2026-01-01
Next coupon date
2027-01-01
Maturity date
2027-01-01
Discounting convention
Compound fractional coupon periods
Price for the whole face value
900
Price convention
Dirty: includes accrued coupon
Currency for all amounts
Euro (EUR)

Expected result

Yield to maturity (nominal annual)
11.111111%

Understanding your result

Coupon rate describes interest on face value; yield also reflects the price paid. Buying below or above face value can therefore change yield without changing coupons.

Yield to maturity is conditional on the scheduled cash flows. It does not predict default, reinvestment rates, an early sale price or an issuer's decision to call the bond.

Questions you might have

What does the result include?

Solve the yield that discounts a bond’s remaining scheduled coupons and redemption to its supplied purchase price.

Which limits should I check?

Regular fixed coupons use the selected discount convention. The separate zero-coupon mode uses a single redemption and Actual/365 annual effective yield.

Choosing the right inputs

Price for the whole face value
Enter the purchase price for the entire face amount entered, not an unscaled percentage quotation.
Price convention
Select whether the price includes accrued coupon. In regular-coupon mode a clean price is adjusted to the dirty cash price before solving.
Bond type
Zero-coupon mode has one redemption payment and uses Actual/365 annual effective yield; regular coupons use a nominal yield at coupon frequency.

Common mistakes to avoid

  • Do not compare nominal and effective yields without converting their conventions.
  • The regular mode does not accept arbitrary irregular-issue coupon schedules.

Assumptions to check

  • Regular fixed coupons use the selected discount convention. The separate zero-coupon mode uses a single redemption and Actual/365 annual effective yield.
  • All calculations run on your device. Figures are scenarios based on your inputs, not investment recommendations.

Sources and method

Read our calculation and testing approach.