YTM assumes that all coupon payments are reinvested at a yield equal to the YTM and that the bond is held to maturity. Formula: Current Bond Yield = BPV / CBP * CR Bond Yield to Maturity formula: Bond Yield to Maturity = ([BPV * (CR / 100)] + [(BPV - CBP) / YUM]) / [(CBP + BPV) / 2] * 100 Where: BPV - Bond Par Value CBP - Current Bond Price CR - Coupon Rate YUM - Years Until Maturity If YTM is greater than the current yield, which in turn is greater than the coupon rate. This will always be true for a bond selling at a discount. In fact, you will always have this: Bond Selling At Satisfies This Condition [Discount] Coupon Rate less than Current Yield less than YTM [Premium] Coupon Rate more than Current Yield more than YTM [Par Value] Coupon Rate equal Current Yield equal YTM • Mortgage Calculator Simply enter the amount you wish to borrow, the term over which you intend to pay it off and the interest rate. * A mortgage loan, also referred to as a mortgage, is used by purchasers of real property to raise funds to buy real estate You can think of a mortgage as either building up equity or paying off debt. Although the payments are all equal, equity doesn't build up at a constant rate: that's because at the beginning the debt is still high, so most of the payments are paying interest; toward the end, the remaining debt is small so very little of the payment goes toward interest. Mortgage Formula: M = [ L(1 + r)^Y x r ] / [ (1 + r)^Y - 1 ] M - Monthly repayment Y - Years L - Initial loan amount r - Loan interest rate Mortgage Example: If you take out a 20 year mortgage for $100,000 at 5% interest, and to calculate the monthly payments. Just divide the interest rate by 12 to get (.05/12) = .004166; and multiply 20 x 12 = 240 to get the number of payments. Then fill up the formula gives you: Monthly payment = [$100,000(1 + .004166)^240 x .004166] / [(1 + .004166)^240 - 1] = $659 Easy to use and suit any person who cares for their money. Thanks for your support and do visit nitrio.com for more apps for your iOS devices.