Yield to Maturity (YTM) – Excel Template

Ivan Kitov
Ivan Kitov

Yield to Maturity (YTM), also known as yield to redemption, is the return an investor can earn, assuming they purchase the bond today and hold it until maturity. It is basically an estimate of the bond’s expected rate of return. YTM represents the discount rate at which the sum of all future cash flows (coupons and principal repayment) equals the bond’s price. If you discount a bond’s future cash flows at this rate, you obtain the bond’s current price.

This open-access Excel template is a useful tool for bankers, investment professionals, corporate finance practitioners, portfolio managers, and anyone preparing a corporate presentation.

Yield To Maturity (YTM) is among the topics included in the Fixed Income module of the CFA Level 1 Curriculum. Gain valuable insights into the subject with our Fixed Income Investments course.

You can also explore other related templates such as—Holding Period Yield, Bank Discount Yield, and Effective Annual Yield.