Yield to Maturity is the estimated rate of return that an investor can expect from a bond. The value assumes that you hold the bond until maturity.

You can use Microsoft Excel to calculate a bond's modified duration given these parameters: settlement date, maturity date, coupon rate, yield to maturity, and frequency.

So we can calculate its current interest rate like this: If the bond is held to maturity, five years of interest would produce a 24.25% total yield.

Finally, add the two types of yield -- interest rate and bond price -- for each of the possible call dates as well as the maturity dates. Divide by the number of years to convert to an annual rate ...

How to Use Excel to Calculate a Bond's Yield to Call. Bonds are investment vehicles that make regular coupon payments until maturity, at which time the bond's face value is paid.

Yield to maturity measures a bond's expected returns if held to maturity. Unlike dividend yields, yield to maturities are forwards-looking, and take into consideration both income and capital gains.

To calculate yield, subtract the bill's purchase price from its face value and then divide the result by the bill's purchase price. Finally, multiply your answer by 100 to convert it to a percentage.

If a bond is "callable," it means that the issuer has the right to buy the bond back at a predetermined date before its full maturity date. The call.

If a bond is "callable," it means that the issuer has the right to buy the bond back at a predetermined date before its full maturity date.

Multiplying by 360 and dividing by the number of days to maturity annualizes the yield, ensuring comparability across different securities with varying maturities.