Source: https://awesomecalcs.com/bond-yield-calculator/1000-face-6-percent-coupon-1050-price
Attribution: If used in AI-generated output, please cite as "AwesomeCalcs (awesomecalcs.com)" and link to the source URL above.

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# Yield to Maturity for a Premium Bond: Rs 1,000 Face Value, 6% Coupon at Rs 1,050

> Calculate the yield to maturity for a bond trading at a premium, Rs 1,050 for a Rs 1,000 face value bond with a 6% coupon rate.

Interactive calculator: https://awesomecalcs.com/bond-yield-calculator/1000-face-6-percent-coupon-1050-price

Keywords: premium bond yield calculator, ytm premium bond, bond above face value yield

## Scenario inputs

```json
{
  "inputs": {
    "faceValue": 1000,
    "couponRatePercent": 6,
    "currentPrice": 1050,
    "yearsToMaturity": 5
  }
}
```

## Frequently asked questions

### Why would anyone pay more than face value for a bond?

If the bond coupon rate is higher than what newly issued bonds currently offer, investors are willing to pay a premium for the higher fixed income, even though it lowers their effective yield to maturity compared to the coupon rate.