Scribd
Upload
57 views

Yield To Maturity Excel Template

The document provides instructions on how to calculate yield to maturity for bonds using given information such as market price, coupon rate, issue price, and bond term. It includes an example calculation of yield to maturity of 14.19% for a bond with a market price of $95, 6 year term, 13% coupon rate, and $100 issue price. A second example is given for calculating post-tax yield to maturity of 9.08% for a bond with a 5 year term, 9% coupon rate, $90 issue price, $105 redemption value, and tax rates of 30% for income and 10% for capital gains.

Uploaded by

Hzl Zlh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
57 views

Yield To Maturity Excel Template

The document provides instructions on how to calculate yield to maturity for bonds using given information such as market price, coupon rate, issue price, and bond term. It includes an example calculation of yield to maturity of 14.19% for a bond with a market price of $95, 6 year term, 13% coupon rate, and $100 issue price. A second example is given for calculating post-tax yield to maturity of 9.08% for a bond with a 5 year term, 9% coupon rate, $90 issue price, $105 redemption value, and tax rates of 30% for income and 10% for capital gains.

Uploaded by

Hzl Zlh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 4

Yield to Maturity Excel Template

Visit: www.educba.com
Email: [email protected]
Calculate the yield to maturity of a bond with the help of following given information:

Particular Values
Market Price (P) $95
Life of Bond (n) 6
Interest Coupon Rate (C) 13
Issue Price (F) $100

Yield to Maturity is calculated using the formula given below


YTM = [C + ((F - P) / n)] / [(F + P)/2]

YTM 14.19%
Consider a market bond issued in the market having a bond period of 5 years and an interest coupon rate of 9%. Consider th
of Bond at $ 90, and redemption value be $ 105 AND Prorated Discount IS 13.50. Calculate the post-tax Yield to Maturity for
Income tax can be assumed at 30% and capital gains are taxed at 10%. You are required to calculate post-tax yield to matur

Particular Values
Bond Period 5
Interest Coupon Rate 9%
Issue Price of Bond $90
Redemption Value $105
Income Tax 30%
Capital Gains are Taxed 10%
Prorated Discount $13.50

Coupon 6.30%

Post Tax Redemption Price $104

Yield to Maturity is calculated using the formula given below


YTM = [Coupon  + Prorated Discount] /[(Redemption Price + Purchase Price)/2]

YTM 9.08%
pon rate of 9%. Consider the issue price
st-tax Yield to Maturity for the investor where the rate of normal
ate post-tax yield to maturity.

You might also like