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.

If a bond is "callable," it means that the issuer has the right to buy the bond back at a predetermined date before its full maturity date.

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.

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.