Bond Yield Calculator
Calculate Bond Yields with Ease
Quickly determine your bond's current yield and yield to maturity (YTM) using this simple online calculator. Just provide the bond's current price, face value (par), coupon rate, payment frequency, and years until maturity. The calculator instantly shows you both results to help you evaluate the return on your investment.
Current Yield reflects the annual income (interest) based on the bond’s market price today. Yield to Maturity (YTM) goes further by estimating the total return you'll earn if you hold the bond until it matures, factoring in both the coupon payments and any difference between purchase and face value.
Examples
Example 1: Calculating Current Yield
Input: Bond Price: $965, Par Value: $1,000, Coupon Rate: 4.2%, Payment Frequency: Semi-Annually, Years to Maturity: 3
Output: Current Yield: 4.35%
The bond pays $42 annually in interest. Divide that by the market price of $965 to get the current yield: 4.35%.
Example 2: Calculating Yield to Maturity (YTM)
Input: Bond Price: $965, Par Value: $1,000, Coupon Rate: 4.2%, Payment Frequency: Semi-Annually, Years to Maturity: 3
Output: YTM: 5.48%
YTM is the annual return you’d earn if you held the bond until maturity. It accounts for coupon payments and the gain from buying below face value. In this case, it's approximately 5.48%.
Frequently Asked Questions
What is current yield on a bond?
Current yield is the annual coupon payment divided by the bond’s current market price. It helps you understand the return based on today’s price—not the original face value.
What does yield to maturity (YTM) mean?
YTM is the total annualized return you can expect if you hold a bond until it matures, including all interest payments and the difference between purchase and face value.
How do I use this Bond Yield Calculator?
Just input the bond’s current market price, par value, coupon rate, how often payments are made, and how many years remain. The tool will calculate both current yield and YTM.
Which payment frequencies can I choose from?
The calculator supports Monthly, Quarterly, Semi-Annually, Annually, and Zero Coupon (no regular payments).