Find out how to calculate the yield to maturity of a zero-coupon bond, and learn why this calculation is simpler than one with a bond that has a coupon.

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 ...

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.

An implication of the above is that yield to maturity is also an indication of a bond fund's expected future dividend yield, assuming no changes in underlying conditions.

To calculate the break-even interest rate, you need to know the yields to maturity, and the number of years left before the bonds mature. Take each bond's yield to maturity, add one to the yield ...