Finance

Bond Yield Calculator

Calculate current yield, approximate YTM, and compare bond returns.

Face (Par) Value ($)

Current Market Price ($)

Coupon Rate (%/yr)

Years to Maturity

Formulas:
Current Yield = Annual Coupon / Market Price × 100
Approx YTM = [C + (F−P)/n] / [(F+P)/2]
Where C = annual coupon, F = face value, P = price, n = years

Bond Yield Types

Coupon Yield: Annual coupon rate stated on the bond (fixed)
Current Yield: Annual coupon divided by market price — changes as price changes
Yield to Maturity (YTM): Total return if held to maturity, including price gain/loss — the most comprehensive measure

Price-Yield Relationship

When a bond trades below par (discount), current yield > coupon rate, and YTM > current yield. When above par (premium), it's reversed. At par, all three yields are equal.