Find out the best practices for most financial modeling to price a bond, calculate coupon payments, and calculate a bond's yield to maturity in Microsoft Excel.

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.

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.

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.

Bond Yield Curves Bond yield curve (Wendorf) Bond yields are typically graphed, with the y-axis displaying interest rates, and the x-axis displaying maturity lengths.