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 ...

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.

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.

Learn about bond coupons, how they're calculated, and their effect on investments. Discover the differences between coupon ...

How to Compute the Effective Rate of a Bond. The bonds that companies and governments sell to borrow money pay a fixed amount of interest each year called the coupon rate.