Bond Yield Calculator
Calculate current yield and approximate yield to maturity for a bond based on face value, coupon rate, and market price.
Bond Yield Results
Current Yield measures annual income relative to the bond’s market price:
Current Yield = (Annual Coupon Payment / Market Price) × 100
Approximate Yield to Maturity (YTM) estimates total return if held to maturity:
Approx. YTM = (Coupon + (Face Value - Market Price) / Years to Maturity) / ((Face Value + Market Price) / 2) × 100
Key terms:
- Face Value (Par) — The amount paid at maturity (usually $1,000)
- Coupon Rate — Annual interest rate paid on the face value
- Market Price — What you actually pay for the bond
- Premium bond — Market price > face value (yield < coupon rate)
- Discount bond — Market price < face value (yield > coupon rate)