Bond Yield Excel Template

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Let us take the example of a 3-year $1,000 bond that will pay annual coupons at a rate of 5%. Calculate the YTM of the bond

Particulars Value
Par Value $1,000
Number of Years Until Maturity (t) 3
Coupon Rate 5.0%
Bond Price $1,050
YTM 3.2%

Annual Coupon Payment is calculated using the formula given below

Annual Coupon Payment = Coupon Rate * Par Value

Annual Coupon Payment $50

%. Calculate the YTM of the bond if its current market price is $1,050.
Let us take the example of a 5-year $1,000 bond that pays a coupon rate of 5%. Calculate the bond’s current yield if the bon
a premium price of $1,020, The bond trades at par and The bond trades at a discounted price of $980.

Particulars Value
Par Value $1,000
Coupon Rate 5.0%
Current Market Price (Premium) $1,020
Current Market Price (Par) $1,000
Current Market Price (Discount) $980

Coupon Payment is calculated using the formula given below

Coupon Payment = Coupon Rate * Par Value

Coupon Payment $50.0

Current Yield is calculated using the formula given below

Current Yield = Coupon Payment / Current Market Price * 100%

Premium Par Discount

Current Yield 4.9 5.0 5.1
current yield if the bond trades at