Fixed income
Bond Yield & Cashflow
Every coupon and the principal on a timeline — with current yield, yield to maturity and duration.
Yield to maturity
Illustration7.12%
Effective annual yield on the dated cash flows, if held to maturity and every payment arrives on time.
- Current yield
- 7.00%
- Approx. YTM
- 7.00%
- Modified duration
- 4.02 yrs
In plain words
Paying ₹10,000 for 10 bonds could return ₹13,500 over 5 years — 10 coupons and the face value at maturity, if every payment arrives on time.
Coupon schedule
- Total coupons
- ₹3,500
- 10 × ₹350.00
- Principal back
- ₹10,000
- On 4 Oct 2031
- You pay
- ₹10,000
- You receive in total
- ₹13,500
- Net gain
- ₹3,500
- Before tax and costs
- Macaulay duration
- 4.31 yrs
- Average time to the cash flows, weighted by value
- YTM, compounding at coupon frequency
- 7.00%
- Nominal equivalent of the effective yield
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01Method
How this is calculated
The same formulas run on the server and in your browser, documented in plain language. Every assumption is shown beside the result and you can change it.
- Default assumptions reviewed
- 4 Oct 2026
- Formula version
- 1.0.0
Coupon dates are counted back from maturity at the chosen frequency. Every coupon after the settlement date is paid in full to the buyer; the face value is repaid at maturity.
coupon = face value × coupon rate ÷ payments per year
Current yield compares the annual coupon with the price. The approximate YTM is the standard shortcut and is shown for comparison only.
approx. YTM = (C + (F − P) ÷ n) ÷ ((F + P) ÷ 2)
The annual rate at which the dated cash flows are worth the price paid (Actual/365) — the same idea as XIRR. It assumes every payment arrives on time and coupons are reinvested at the same yield. Accrued interest is ignored unless the price includes it, so the figure is marked approximate when settlement falls inside a coupon period.
Macaulay duration is the present-value-weighted average time to each cash flow. Modified duration divides it by (1 + yield) and indicates sensitivity to rate changes.
Default assumptions are hypothetical round numbers chosen for illustration. They are not forecasts and not a view on any product. Change them to see how sensitive the result is.
02Questions
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Terms to know
- CouponThe interest a bond pays its holder, stated as an annual percentage of the bond’s face value and paid on fixed dates.
- YTMThe annualised return on a bond bought at today’s price and held to maturity, if every payment arrives as promised and coupons are reinvested at that rate.
- Current yieldA bond’s annual coupon divided by its current market price — a quick measure of income relative to what you pay today.
- DurationThe weighted average time, in years, to receive a bond’s cash flows — and a guide to how sensitive its price is to interest rates.
- Modified durationAn estimate of how much a bond’s price changes, in percent, for a one percentage point change in interest rates.
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