Bond Yield Calculator (YTM / YTC / After-Tax)

★ Companion Workbook · Free Download

The Bond Yield Workbook — six tabs, ten-bond portfolio, tax-equivalent solver

Take the calculator offline. Run YTM/YTC/YTW on ten bonds at once, compute weighted-average yield across a portfolio, solve tax-equivalent yield on muni vs Treasury vs corporate, and load a live Treasury yield curve. Rosenbaum-Baratelli standard formatting throughout.

Download the workbook (.xlsx) → Read the methodology (.pdf, 18 pp) →

Bond terms

From the bond's offering document, broker confirmation, or TRACE quote.

Face value (par)

Standard bond unit is $1,000 face. Treasuries trade in $100 multiples but quote $1,000 face.

Coupon rate (annual %)

Stated annual interest. A 4.25% coupon on $1,000 face pays $42.50/yr (or $21.25 semi-annually).

Current price ($, per $1,000 face)

Quote convention: price per $1,000 face. A bond quoted "96.50" trades at $965.

Years to maturity

Time until principal is repaid. Fractional years allowed (e.g. 9.5).

Payment frequency

Bond type (for tax treatment)

Tax inputs (for after-tax YTM)

Your marginal rates on bond interest. Coupons are taxed annually as ordinary income unless the bond type carves them out.

Marginal federal tax rate (%)

Top marginal: 37%; common upper-middle brackets are 24%, 32%, 35%.

Marginal state + local tax rate (%)

CA top 13.3%; NY 6.85% + NYC 3.876%; TX/FL/WA/NV 0%. Include local where applicable.

Callable (optional)

If the bond is callable, the issuer can redeem before maturity. YTC tells you what you earn if they do.

This bond is callable

Call price ($, per $1,000 face)

Common: par ($1,000) or par plus a small premium ($1,030).

Years to first call

From the bond's call schedule. Often 5 or 10 years from issue.

Your four yields

YIELD COMPARISON · THE FOUR NUMBERS THAT MATTER

Compute to see your yields.

Current Yield

—

Coupon ÷ price. Ignores price drift to par at maturity.

Yield to Maturity

—

The IRR — what you earn if you hold to maturity and reinvest at YTM.

Yield to Call

—

Not callable.

After-Tax YTM

—

What you actually keep.

Discounted cash-flow build — how YTM falls out of present value

Each future coupon and the principal at maturity, discounted at the YTM rate. Sum equals current price (that's the YTM definition). First and last few periods shown; for clarity intermediate periods are aggregated.

Show the math — bond pricing formula walked, line by line ›

The bond pricing formula. A bond's price equals the present value of all future coupon payments plus the present value of face at maturity, discounted at the yield-to-maturity rate.

Price = Sum [t=1..n] (Coupon / (1 + y/m)^t) + Face / (1 + y/m)^n

Where:

Coupon = annual coupon ÷ m (periodic payment)
y = yield to maturity (annual)
m = payments per year (2 for semi-annual)
n = total periods (years × m)

Current Yield — the simplest. Annual coupon divided by current price.

CY = (Coupon rate × Face) / Price

Yield to Maturity (YTM) — the IRR of the bond's cash flows. There is no closed-form solution; the tool uses Newton-Raphson iteration. Starting guess: current yield. Converges in <10 iterations for normal bonds.

Solve for y such that: Price − Sum(PV of coupons) − PV of face = 0

Yield to Call (YTC) — same calculation, but with the call price substituted for face and the years-to-call substituted for years-to-maturity. If a bond is trading above call price, the issuer is likely to call; YTC is the realistic yield in that case.

Yield to Worst (YTW) — the lower of YTM and YTC. That's what your broker quotes. This tool surfaces both so you can see which one binds.

After-Tax YTM. Couponseach period are taxed at your marginal ordinary-income rate (federal + state for taxable bonds; federal-only for Treasuries; tax-exempt for in-state munis; federal-exempt only for out-of-state munis). The tool re-runs the YTM solve with each coupon shrunk by the appropriate tax rate.

After-tax coupon = Coupon × (1 − t_eff)

Where t_eff depends on the bond type. Treasury interest is state-exempt by federal law (Public Salary Tax Act of 1939, codified at 31 USC 3124). In-state munis are typically federal + state exempt. Out-of-state munis are federal-exempt but state-taxable.

DIG DEEPER · INSTITUTE FIXED-INCOME TOOLS

Related tools & guides

Bond duration and convexity — what happens to the price if rates move → Bond Duration & Convexity Calculator
Building a bond ladder for predictable income → Bond Ladder Builder
Municipal bond tax-equivalent yield — muni vs taxable comparison → After-Tax Municipal Bond Yield
First Principles Guide + the Family Office Reference — fixed-income allocation framework for post-liquidity-event treasuries.

Disclosure. This tool produces an educational planning estimate. Bond pricing in the real market includes accrued interest (which we ignore for simplicity — subtract from quoted price to get "clean" price), bid-ask spread, settlement-date conventions (T+1 for Treasuries, T+2 for corporates / munis), and credit risk that the discount-rate framework does not capture. Tax treatment of OID (original-issue discount) and de minimis municipal bonds is more nuanced than the after-tax shortcut here. This is not investment advice; consult a fixed-income specialist or your broker for trade-level analysis. The Baratelli Institute does not sell bonds or earn commissions on referrals. baratelliinstitute.com

What does this bond actually yield? Current Yield, YTM, YTC, and After-Tax YTM — with every present-value cash flow shown.

Bond terms

Tax inputs (for after-tax YTM)

Callable (optional)

Your four yields

Discounted cash-flow build — how YTM falls out of present value

Same subject. Four levels of depth.

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