Current Yield Bond Calculator

Summary

Enter a bond's face value, coupon rate, and market price to instantly calculate its current yield and see how it compares to the coupon rate.

How it works

1. Enter the bond's face (par) value — typically $1,000.
2. Enter the annual coupon rate as a percentage (e.g., 5 for 5%).
3. Enter the bond's current market price.
4. The calculator divides the annual coupon payment by the market price to produce the current yield.
5. A comparison bar shows how current yield relates to the coupon rate.
6. See instantly whether the bond trades at a premium, discount, or par.

Use cases

• Evaluate income return on a bond you are considering purchasing.
• Compare current yields across multiple bonds with different market prices.
• Understand why a bond trading below par has a current yield above its coupon rate.
• Screen bonds for income-focused portfolios.
• Explain to clients how market price changes affect effective yield.
• Quickly check if a bond's income stream justifies its premium price.

Frequently Asked Questions