NCD & Bond Yield Calculator
The coupon rate is not your return. Find the true yield to maturity (YTM) and what you actually keep after tax, then compare it with an FD.
| You invest | |
| Total coupons received | |
| Principal back at maturity | |
| Tax on coupons + gain (approx.) | |
| Net profit after tax |
How to read this
YTM is the single annual rate that makes all future coupons plus your principal worth exactly what you pay today. Buy below face value and your YTM is higher than the coupon; buy above it and YTM is lower.
Current yield is just annual coupon ÷ price. It ignores the gain or loss at maturity, so it can mislead.
Post-tax yield is what matters if you're in a high slab. A 10% NCD and a 7.25% FD look far apart before tax and much closer after.
Always check the credit rating, whether the NCD is secured, how liquid it is on the exchange, and what happens if the issuer defaults. Higher yield almost always means higher risk.