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How to Calculate YTM in Excel

YTM is academically defined as market interest rate, but means Yield to Maturity. It actually takes purchase price, the value of redemption, time between payment of interest, and the yield of coupon.

We will calculate the YTM at ease, and you need a data that looks like this:

data table

Important Note: It is extremely important that the frequency is 1 – 4, and the basis is 1 – 3. This would guarantee the calculation of the YTM being successful.

Click beside Yield (B11) (1), type

=YIELD(B4;B5;B6;B7;B8;B9;B10) (2), and press enter.

YIELD formula

Note: You can now format the yield to any format you want.


Template

You can download the Template here – Download
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