Bond Current Yield Calculator

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The nominal value printed on the bond, also called par value. Most government and corporate bonds have a face value of $1,000.
The stated interest rate on the bond as a percentage of face value. A 5% coupon on a $1,000 bond pays $50 per year.
%
How often coupon payments are made. Most U.S. Treasury and corporate bonds pay semi-annually.
The price you would pay to buy the bond today, often quoted as a dollar amount. A price below face value means the bond trades at a discount; above face value is a premium.
Switch to "required price" to find the market price that would deliver a specific current yield.
Currency
Current yieldSolid yield
5.2632%

Annual coupon income divided by the current market price

Annual coupon$50.00
Coupon per period$25.00
Premium / discount-$50.00
Premium / discount %-5%
5.2632% %
Low<2%Moderate2%-5%Solid5%-8%High8%+

Bond current yield: 5.26%

  • The current yield (5.26%) exceeds the stated coupon rate (5%) because the bond trades at a discount to par.
  • This bond pays $50.00 in annual coupon income regardless of market price.
  • Trading at a discount of $50.00 below par: the investor also captures a capital gain if held to maturity.
  • Current yield measures only coupon income relative to price. For a full return picture, compare the yield to maturity (YTM), which also accounts for the gain or loss at redemption.

Next stepUse a yield-to-maturity calculator to see the total return if you hold this bond to its redemption date.

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