Nominal Yield Calculator

✖Total Annual Interest Payments refers to the sum of all interest payments made on a loan or debt instrument within a one-year period.ⓘ Total Annual Interest Payments [AIP]			+10% -10%
✖Face Value is the nominal value of a bond, representing the amount the issuer agrees to repay at maturity.ⓘ Face Value [F]			+10% -10%

✖Nominal Yield is a financial metric that expresses the annual income generated from an investment as a percentage of its initial cost or market value.ⓘ Nominal Yield [NY]

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Formula

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Nominal Yield

Formula

`"NY" = ("AIP"/"F")*100`

Example

`"4"=("60"/"1500")*100`

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Nominal Yield Solution

STEP 0: Pre-Calculation Summary

Formula Used

Nominal Yield = (Total Annual Interest Payments/Face Value)*100
NY = (AIP/F)*100
This formula uses 3 Variables

Variables Used

Nominal Yield - Nominal Yield is a financial metric that expresses the annual income generated from an investment as a percentage of its initial cost or market value.
Total Annual Interest Payments - Total Annual Interest Payments refers to the sum of all interest payments made on a loan or debt instrument within a one-year period.
Face Value - Face Value is the nominal value of a bond, representing the amount the issuer agrees to repay at maturity.

STEP 1: Convert Input(s) to Base Unit

Total Annual Interest Payments: 60 --> No Conversion Required
Face Value: 1500 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

NY = (AIP/F)*100 --> (60/1500)*100

Evaluating ... ...

NY = 4

STEP 3: Convert Result to Output's Unit

4 --> No Conversion Required

FINAL ANSWER

4 <-- Nominal Yield

(Calculation completed in 00.004 seconds)

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Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has created this Calculator and 50+ more calculators!

Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

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< 14 Fixed Income Securities Calculators

Accrued Interest

Go Accrued Interest = (Face Value*Total Annual Coupon Rate*Days since Last Payment Date)/(Number of Coupon Payments per Year*Accrual Period)

Conversion Premium

Go Conversion Premium = Conversion Value-Market Price of Convertible Bond

Conversion Ratio

Go Conversion Ratio = Par Value at Maturity/Conversion Price of Equity

Convexity Adjustment

Go Convexity Adjustment = Bond's Convexity*(Change of Yield^2)*100

Callable Bond Price

Go Callable Bond Price = Non Callable Bond Price-Call Option Price

Nominal Yield

Go Nominal Yield = (Total Annual Interest Payments/Face Value)*100

Expected Loss

Go Expected Loss = Default Probability*Loss Severity given Default

Putable Bond Price

Go Putable Bond Price = Non Putable Bond Price+Put Option Price

Conversion Value

Go Conversion Value = Market Price per Share*Conversion Ratio

Floating Interest Rate

Go Floating Interest Rate = Reference Rate+Fixed Spread

Dirty Price

Go Dirty Price = Clean Price+Accrued Interest

Clean Price

Go Clean Price = Dirty Price-Accrued Interest

Semi Annual Bond Equivalent Yield

Go Semi Annual Bond Equivalent Yield = Yield per Semi Annual Period*2

Loss Severity

Go Loss severity = 1-Recovery Rate

Nominal Yield Formula

Nominal Yield = (Total Annual Interest Payments/Face Value)*100
NY = (AIP/F)*100

What is Nominal Yield ?

Nominal Yield, also called coupon yield or nominal interest rate, is the fixed annual income generated by an investment relative to its face value or principal amount. It serves as a baseline for investors to assess the expected annual return from the investment's original value, excluding factors like market price fluctuations, inflation, or taxes. Investors often consider nominal yield alongside other metrics such as real yield or yield to maturity for a more comprehensive analysis of the investment's overall performance.

How to Calculate Nominal Yield?

Nominal Yield calculator uses Nominal Yield = (Total Annual Interest Payments/Face Value)*100 to calculate the Nominal Yield, The Nominal Yield is a financial metric that expresses the annual income generated from an investment as a percentage of its initial cost or market value. Nominal Yield is denoted by NY symbol.

How to calculate Nominal Yield using this online calculator? To use this online calculator for Nominal Yield, enter Total Annual Interest Payments (AIP) & Face Value (F) and hit the calculate button. Here is how the Nominal Yield calculation can be explained with given input values -> 4 = (60/1500)*100.

FAQ

What is Nominal Yield?

The Nominal Yield is a financial metric that expresses the annual income generated from an investment as a percentage of its initial cost or market value and is represented as NY = (AIP/F)*100 or Nominal Yield = (Total Annual Interest Payments/Face Value)*100. Total Annual Interest Payments refers to the sum of all interest payments made on a loan or debt instrument within a one-year period & Face Value is the nominal value of a bond, representing the amount the issuer agrees to repay at maturity.

How to calculate Nominal Yield?

The Nominal Yield is a financial metric that expresses the annual income generated from an investment as a percentage of its initial cost or market value is calculated using Nominal Yield = (Total Annual Interest Payments/Face Value)*100. To calculate Nominal Yield, you need Total Annual Interest Payments (AIP) & Face Value (F). With our tool, you need to enter the respective value for Total Annual Interest Payments & Face Value and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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