Bond Yield & Duration Calculator
Analyze a bond's yield measures and interest-rate risk. Enter the bond's face value, coupon, market price, and years to maturity to compute current yield, yield to maturity (YTM), Macaulay duration, and modified duration.
What are bond yield and duration?
Current Yield is the annual coupon income divided by the bond's current market price. It gives a quick snapshot of the income return relative to the price paid, but it ignores any capital gain or loss at maturity.
Yield to Maturity (YTM) is the total annualized return an investor earns if the bond is held to maturity, accounting for all coupon payments plus the difference between the purchase price and face value. YTM is the discount rate that equates the present value of all future cash flows to the current market price.
Macaulay Duration measures the weighted-average time (in years) to receive each cash flow. It is a key measure of interest-rate risk: bonds with higher duration are more sensitive to rate changes.
Modified Duration refines Macaulay duration by dividing by (1 + YTM / frequency). It estimates the percentage change in bond price for a 1% change in yield.
How it works: This calculator uses the financial library to solve for YTM, then computes Macaulay duration as the weighted-average time of each discounted cash flow. Modified duration follows directly. A cash flow table shows each period's contribution, and two charts visualize the present value stream and the relative share of coupon payments versus principal repayment.
Bond Yield & Duration Calculator — YTM, Current Yield, Modified Duration
Free bond yield and duration calculator. Compute current yield, YTM, Macaulay and modified duration. Visualize cash flow PV and coupon vs principal breakdown.
PV of Cash Flows
Coupon vs Principal (% of Total PV)
Cash Flow Schedule
| Period | Cash Flow | PV of CF | Weight |
|---|---|---|---|
| 1 | $25.00 | $24.31 | 2.56% |
| 2 | $25.00 | $23.64 | 2.49% |
| 3 | $25.00 | $22.99 | 2.42% |
| 4 | $25.00 | $22.36 | 2.35% |
| 5 | $25.00 | $21.74 | 2.29% |
| 6 | $25.00 | $21.14 | 2.23% |
| 7 | $25.00 | $20.56 | 2.16% |
| 8 | $25.00 | $20.00 | 2.10% |
| 9 | $25.00 | $19.45 | 2.05% |
| 10 | $25.00 | $18.91 | 1.99% |
| 11 | $25.00 | $18.39 | 1.94% |
| 12 | $25.00 | $17.88 | 1.88% |
| 13 | $25.00 | $17.39 | 1.83% |
| 14 | $25.00 | $16.91 | 1.78% |
| 15 | $25.00 | $16.45 | 1.73% |
| 16 | $25.00 | $15.99 | 1.68% |
| 17 | $25.00 | $15.55 | 1.64% |
| 18 | $25.00 | $15.13 | 1.59% |
| 19 | $25.00 | $14.71 | 1.55% |
| 20 | $1,025.00 | $586.48 | 61.74% |