Finance · Free tool
Bond YTM Calculator
YTM is the annualised return assuming you hold to maturity and reinvest coupons at YTM. The number broker apps quote when listing G-Sec / corporate bonds.
Bond bought below face → YTM > coupon rate. Bond bought at premium → YTM < coupon rate. YTM equals coupon when price equals face.
FAQ
Why is YTM different from coupon rate?
Coupon is fixed at issuance. YTM accounts for the price you actually paid. If you bought below face value, YTM > coupon. If above face, YTM < coupon.
Is YTM guaranteed?
Only if (a) you hold to maturity, (b) issuer doesn't default, and (c) you reinvest coupons at the same rate. Realised return is usually slightly lower than computed YTM.
Are tax-free bond YTMs better than they look?
Yes — much better. A 5.5% tax-free bond is equivalent to 7.85% pre-tax in the 30% slab. Tax-free PSU bonds (NHAI, REC, IRFC) are competitive with bank FDs at 7%.