Standard Treasury face value is usually 100 or 1000.
The fixed interest rate paid annually.
Current trading price in the secondary market.
Forecasted average annual inflation rate.
Calculation Results
Current Yield:—
Approximate Yield to Maturity (YTM):—
Real Yield (Inflation Adjusted):—
Annual Interest Income:—
Understanding 10-Year Treasury Yields
The 10-year Treasury note is a debt obligation issued by the United States government with a maturity of 10 years. Its yield is a critical economic indicator, serving as a benchmark for various interest rates, including residential mortgages and corporate bonds.
How the Calculation Works
This calculator analyzes the relationship between the bond's price and its yield. Because Treasury notes trade on the secondary market, their price fluctuates based on supply, demand, and Federal Reserve policy.
Current Yield: Calculated by dividing the annual coupon payment by the current market price.
Yield to Maturity (YTM): This accounts for the coupon payments AND the capital gain or loss realized when the bond is held until the government pays back the full par value at the end of 10 years.
Real Yield: Perhaps the most important metric for long-term investors, the real yield is the nominal yield minus the expected inflation rate, representing the actual increase in purchasing power.
Example Scenario
If you purchase a 10-year note with a Par Value of $100 and a 4.0% Coupon at a discount price of $95.00, your yield is higher than the coupon rate because you are buying the future $100 repayment at a $5 discount. If inflation is 2%, your nominal YTM might be around 4.6%, but your Real Yield would be approximately 2.6%.
function calculateTreasuryYield() {
var par = parseFloat(document.getElementById('parValue').value);
var coupon = parseFloat(document.getElementById('couponRate').value) / 100;
var price = parseFloat(document.getElementById('marketPrice').value);
var inflation = parseFloat(document.getElementById('inflationRate').value) / 100;
var years = 10;
if (isNaN(par) || isNaN(coupon) || isNaN(price) || isNaN(inflation) || price <= 0) {
alert("Please enter valid positive numbers for all fields.");
return;
}
// 1. Annual Coupon Income
var annualIncome = par * coupon;
// 2. Current Yield
var currentYield = (annualIncome / price) * 100;
// 3. Approximate Yield to Maturity (YTM)
// Formula: [C + (F – P) / n] / [(F + P) / 2]
var ytm = (annualIncome + (par – price) / years) / ((par + price) / 2);
var ytmPercent = ytm * 100;
// 4. Real Yield (Fisher Equation approximation)
var realYield = ytmPercent – (inflation * 100);
// Display results
document.getElementById('treasuryResults').style.display = 'block';
document.getElementById('resCurrentYield').innerText = currentYield.toFixed(3) + '%';
document.getElementById('resYTM').innerText = ytmPercent.toFixed(3) + '%';
document.getElementById('resRealYield').innerText = realYield.toFixed(3) + '%';
document.getElementById('resIncome').innerText = '$' + annualIncome.toFixed(2);
}