Bond Current Yield

Calculate current yield of bonds.

Bond Current Yield Calculator

Bond Information

Total annual coupon payments received

Please enter a valid coupon amount

Current market price of the bond

Please enter a valid bond price

Alternative: Calculate from Bond Details

Price as percentage of face value (e.g., 95 = $950 for $1000 bond)

About Current Yield

Current yield measures the annual return based on the bond's current market price.

It doesn't account for capital gains/losses at maturity, unlike yield to maturity.

Useful for comparing income-generating investments.

Yield Analysis

Current Yield

Annual return based on current price

Annual Coupon:
Current Price:
Price vs Par:

Yield Comparison

Current Yield:
Coupon Rate:
Yield Premium/Discount:

Market Rate Comparison

Formula

Current Yield = (Annual Coupon ÷ Current Price) × 100

Example: ( ÷ ) × 100 =

Investment Analysis

✅ Higher current yield than coupon rate (bond trading at discount)

⚠️ Lower current yield than coupon rate (bond trading at premium)

ℹ️ Current yield equals coupon rate (bond trading near par)

Remember: Current yield doesn't include capital gains/losses at maturity.

Understanding Bond Current Yield

What is Current Yield?

Current yield is a bond's annual coupon payment divided by its current market price, expressed as a percentage.

It represents the annual return you would receive if you bought the bond at its current price and held it for one year.

Unlike yield to maturity, it doesn't consider the bond's price appreciation or depreciation until maturity.

When to Use Current Yield

  • • Comparing income from different bonds
  • • Evaluating bonds vs dividend stocks
  • • Quick assessment of bond attractiveness
  • • Income-focused investment strategies
  • • Short-term holding period analysis

Discount Bonds

Price < Face Value

Current Yield > Coupon Rate

Higher income yield due to lower purchase price

Par Bonds

Price = Face Value

Current Yield = Coupon Rate

Yield equals stated coupon rate

Premium Bonds

Price > Face Value

Current Yield < Coupon Rate

Lower income yield due to higher purchase price

⚠️ Limitations of Current Yield

  • • Doesn't account for capital gains/losses at maturity
  • • Ignores the time value of money
  • • Doesn't consider reinvestment of coupon payments
  • • Less useful for long-term investment decisions
  • • Should be used alongside yield to maturity for complete analysis
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