YTM calculator for bond portfolio

[hotwired]

Good Day Everyone

With bond rates having increased, and at the same time having sold a couple of multi unit apartment buildings, I've been assembling a bond ladder of sorts. (I say of sorts because it's set up to fund SOME of our needs, and I've also put a small amount into far dated zero's and TIPS as sort of a "win win" (If rates go down, I get a cap gain, if they go up, just wait for maturity and get 5.5% for 25 years). My question is, now that I have this big unwieldly ladder, is there a tool to efficiently calculate the yield to maturity? Most of these I bought before rates dropped recently, (just before the 10 year tbond topped out at 5%-ish) so most have a little bit of a gain. It would just be nice to see what the expected yield is. (I know with TIPS I will have to plug in an assumption for inflation)

Thanks. I might be missing something simple...it wouldn't be the first time!

 

[pb4uski]

No software tool that I know of.

I keep a spreadsheet of my fixed income holdings and for each holding I know purchase cost (excluding accrued interest) and YTM. What I do is calculate the yield for a year... sumproduct of (purchase cost, YTM) and then divide the result by the total purchase cost to get a portfolio yield.

I have some TIPS and use the real yield + 3% for inflation.

 

[Earl E Retyre]

The following link is an online calculator computing YTM:

https://dqydj.com/bond-yield-to-maturity-calculator/

 

[Rianne]

Good Day Everyone

With bond rates having increased, and at the same time having sold a couple of multi unit apartment buildings, I've been assembling a bond ladder of sorts. (I say of sorts because it's set up to fund SOME of our needs, and I've also put a small amount into far dated zero's and TIPS as sort of a "win win" (If rates go down, I get a cap gain, if they go up, just wait for maturity and get 5.5% for 25 years). My question is, now that I have this big unwieldly ladder, is there a tool to efficiently calculate the yield to maturity? Most of these I bought before rates dropped recently, (just before the 10 year tbond topped out at 5%-ish) so most have a little bit of a gain. It would just be nice to see what the expected yield is. (I know with TIPS I will have to plug in an assumption for inflation)

Thanks. I might be missing something simple...it wouldn't be the first time!

Not simple. I specifically bought CDs and treasuries with coupons of 4% up to 5.5% to get the cash flow into the settlement account. Figuring out the actual return over time is confusing to me, although it is simple interest not compounding.

 

[Earl E Retyre]

Not simple. I specifically bought CDs and treasuries with coupons of 4% up to 5.5% to get the cash flow into the settlement account. Figuring out the actual return over time is confusing to me, although it is simple interest not compounding.

It is my understanding that from a cash flow perspective you multiply the coupon by the face value of the CD and divide by 12 if paid monthly (if semi-annual divide by 6, etc.).

At maturity you will get paid the face value of the CD which will make the effective yield higher assuming you bought it at a discount. The YTM calculator will show you what the effective yield will be.

 

[pb4uski]

Not simple. I specifically bought CDs and treasuries with coupons of 4% up to 5.5% to get the cash flow into the settlement account. Figuring out the actual return over time is confusing to me, although it is simple interest not compounding.

Have you tried XIRR?

All you need are beginning value, any deposits or withdrawals and their dates and the ending value.