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To apply the yield to maturity formula, we need to define the face value, bond price and years to maturity For example, if you purchased a $1,000 for $900 The interest is 8 percent, and it will mature in 12 years, we will plugin the variables C = 1000*008 = 80If your state levies an income tax, the same equation can be used to calculate the Treasuryequivalent yield of a municipal bond issued in your state or the fully taxableequivalent yield of aYield to Maturity Examples C = future cash flows/coupon payments r = discount rate (the yield to maturity) F = Face value of the bond n = number of coupon payments Vba To Calculate Yield To Maturity Of A Bond Approximate yield to maturity equation