Bond price and yield
Find the price or yield to maturity (YTM) of a plain fixed-coupon bond.
What the figures mean
- Bond yield to maturity (YTM)
Calculated annualised yield from the purchase price, coupons and maturity repayment. It is not the coupon rate or a guarantee of realised return.
Simple example: A bond with a 5% coupon bought below face value can have a yield to maturity above 5%.
- Valuing future money today
A future amount is reduced using the chosen required return to compare it with money today. This is discounting, not a shop discount or solely an inflation adjustment.
Simple example: €110 in one year at a 10% rate corresponds to €100 today.