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Bond yield measures investor return. Yield to Maturity (YTM) is the total return if held to maturity. Bond prices and yields move inversely — when prices rise, yields fall.

Formel

YTM ≈ (C + (F−P)/n) / ((F+P)/2) × 100%; Current yield = Annual coupon / Market price
C
Annual coupon payment (Currency)
F
Face/par value (Currency)
P
Current market price (Currency)
n
Years to maturity (Years)

Trinn-for-trinn guide

  1. 1YTM ≈ (Coupon + (Face−Price)/Years) / ((Face+Price)/2)
  2. 2Current yield = Annual coupon / Market price
  3. 3Premium bond: price > face, yield < coupon rate
  4. 4Discount bond: price < face, yield > coupon rate

Løste eksempler

Inndata
Face $1000, price $950, coupon 5%, 10yr
Resultat
YTM ≈ 5.55%

Ofte stilte spørsmål

Why do bond prices and yields move opposite?

The coupon (interest payment) is fixed. When market rates rise, new bonds offer higher coupons, making old bonds less valuable—price drops to match yield. Inverse relationship.

What's the difference between coupon rate and yield?

Coupon rate is fixed at issuance. Yield fluctuates with market price. A 5% coupon bond bought at discount has higher yield; bought at premium has lower yield.

How does duration relate to yield?

Duration measures price sensitivity to yield changes. Longer duration = more sensitive. A 1% yield change on a 5-year bond impacts price ~5%; on a 20-year bond ~20%.

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