Bond Yield Calculator
Use this bond yield calculator to estimate current yield and approximate yield to maturity for a bond based on its coupon rate, market price, face value, and time to maturity.
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Results
- Annual coupon payment
- $50.00
- Per-period coupon
- $25.00
- Current yield
- 5.26%
- Approx. yield to maturity
- 5.77%
- Status
- Discount
Formula
Coupon = Face × Coupon Rate
Current Yield = Coupon / Price
Approx YTM = [Coupon + (Face − Price)/Years] / [(Face + Price)/2]
How to calculate
- Calculate the annual coupon payment from face value and coupon rate.
- Divide annual coupon by current market price to get current yield.
- For approximate YTM, adjust for the gain or loss between market price and face value over the remaining years.
- Divide by the bond's average price.
Worked example
Face $1,000, coupon 5%, price $950, 8 years to maturity: Current yield ≈ 5.26%; YTM ≈ 5.77%.
Frequently asked questions
What is bond yield?
Bond yield is the return an investor may earn based on a bond's price, coupon payments, and time to maturity.
What is current yield?
Current yield compares annual coupon income to the bond's current market price.
What is yield to maturity?
Yield to maturity estimates total annualized return if the bond is held until maturity.
Why does bond price affect yield?
If you pay less than face value, the potential return increases. If you pay more than face value, the yield generally decreases.
Related calculators
Bond yields shown are estimates only. Exact yield to maturity calculations may require more advanced methods.