Bond Yield Calculator
Calculate current yield and yield to maturity from a bond's price, coupon and term.
About the Bond Yield Calculator
Enter the face value, coupon rate, years to maturity, coupon frequency and the price you'd pay. The calculator gives the yield to maturity and the current yield.
Current yield is just the yearly coupon divided by price. Yield to maturity also counts the gain or loss between the price you pay and the face value at maturity, assuming coupons are reinvested at the same rate.
The formula
Find y such that price = PV of coupons + PV of face value
Worked example
A 1,000 bond with a 5% coupon paid twice a year, 10 years to maturity, priced at 925
- Current yield: 50 ÷ 925 = 5.405%
- Yield to maturity: 6.009%
- Higher than the coupon because you also gain 75 at maturity
Questions people ask
YTM vs coupon rate?
The coupon is fixed; YTM depends on the price you pay.
Is YTM guaranteed?
Only if the issuer pays everything and you can reinvest coupons at the same yield.
Why do bond prices fall when rates rise?
New bonds pay more, so existing ones must get cheaper to offer a matching yield.