Bond redemption yield calculator UK
Solve the annual yield of a fixed-coupon bond held to redemption. Check the formula, worked example and limits before using your own figures.
Enter your figures
Annual yield to redemption
Inputs changed. Select Calculate result to update your estimate.
Use your actual figures. Any prefilled price, fee, rate or return is an editable illustration, not a current product quote. Annual coupons and whole-year timing only; typical UK gilts can pay semi-annually, so this is not an exact gilt quotation. Use a full purchase price including any accrued interest. No default, tax or fees.
How the bond redemption yield calculator uk works
Solve price = sum(coupon/(1+y)^t) + redemption/(1+y)^years.
Data basis: mathematical formula using your inputs. Example prices and rates are illustrative, not current market quotes.
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Worked example: bond redemption yield
This illustration uses the calculator’s example inputs. It is not a quote or a recommended financial decision.
- Redemption value (£)
- 100
- Annual coupon rate (%)
- 4
- Full purchase price (£)
- 95
- Whole years to redemption
- 5
Annual yield to redemption: 5.16%
Solve price = sum(coupon/(1+y)^t) + redemption/(1+y)^years.
Bond redemption yield: questions answered
What does the bond redemption yield calculation include?
Solve price = sum(coupon/(1+y)^t) + redemption/(1+y)^years. Use your actual figures. Any prefilled price, fee, rate or return is an editable illustration, not a current product quote. Annual coupons and whole-year timing only; typical UK gilts can pay semi-annually, so this is not an exact gilt quotation. Use a full purchase price including any accrued interest. No default, tax or fees.
Using your result
Example inputs are a starting point. Replace them with your figures and select Calculate result. Results are rounded for display; calculations use unrounded values.
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