text: The rate of return anticipated on a bond if it is held until the maturity date. YTM is considered a long-term bond yield expressed as an annual rate. The calculation of YTM takes into account the current market price, par value, coupon interest rate and time to maturity. It is also assumed that all coupons are reinvested at the same rate. Sometimes this is simply referred to as "yield" for short.\n\nTo calculate it, you can use the YIELD function in Excel. (Go to Tools>Add ins and select Analysis Toolpak if the function is not listed). This function essentially determines what rate is needed to discount the future cash flows of the bond to make the present value equal to the current price.