Uploaded June 2021 | Updated September 2026, 2 weeks ago
In this video I will teach you what Yield to Maturity is (YTM). I will show you how you can calculate YTM for premium bonds, discount bonds and for bonds bought at issue. This video will focus on how to use the approximation formula but will also mention at the end how to use the trial and error method. This video will include clear explanations (I've tried to make it as easy to follow as possible) and fully worked examples with step by step solutions. Hopefully this tutorial helps you and you can easily and quickly find the YTM of a bond.
0:00 Introduction to Bond Yield
1:40 Premium and Discount Bonds
5:02 Yield to Maturity Approximation Formula
6:29 How to Calculate YTM: Worked Examples
11:18 Intro to Trial and Error Method
In this video I will teach you what Yield to Maturity is (YTM). I will show you how you can calculate YTM for premium bonds, discount bonds and for bonds bought at issue. This video will focus on how to use the approximation formula but will also mention at the end how to use the trial and error method. This video will include clear explanations (I've tried to make it as easy to follow as possible) and fully worked examples with step by step solutions. Hopefully this tutorial helps you and you can easily and quickly find the YTM of a bond.
0:00 Introduction to Bond Yield
1:40 Premium and Discount Bonds
5:02 Yield to Maturity Approximation Formula
6:29 How to Calculate YTM: Worked Examples
11:18 Intro to Trial and Error Method
