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.

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.

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 ...

Step 3: Run an example Say you were evaluating a Treasury bill with a 26-week maturity and a price of $97.50. First, to calculate the bond's yield, subtract 97.5 from 100 and divide by 97.5.

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.

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.

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.

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.