Here the best method to calculate maturity, which is denoted as YTM. Maturity consists of capital gain of interest and total return. Bond yield of the maturity is measure according to seasoned and it will be varied with redeemed par values. For calculating the maturity, first add the total return value with maximum gaining of interest.
YTM= total return + rate of interest
Annualized return = annualized capital gain + interest rate
With this annualized return you can easily calculated the obtain yield, which means divide the annualized return with purchase price.
Obtained yield = annualized return / purchase price
For example purchasing rate is dollar 900 and annualized return will be dollar 70 then obtain yield will be 7.78 percentage. After that subtract the par with annualized capital gain, subtracting the par of dollar 100 with capital gain will be dollar twenty then result will be dollar 980. Divide the annualized return and value of obtain form previous step. Total value divided by two will be offer the accurate maturity value.
Techniques of calculating maturity are combined with effects of temperature and time. It will be developed according to strength concrete. This method offers the simple relatively approach for measuring maturity. It is highly useful for reliable marketing estimation. Origin method of calculating maturity will be carried out England.