Bond Yield Calculator
Calculate YTM, current yield, nominal yield, and effective yield for bonds
Calculate Bond Yield
Current market price of the bond
Principal amount paid at maturity
Annual interest rate as percentage of face value
Number of coupon payments per year
Time until bond matures
Bond Yield Results
Annual Coupon: $50.00 | Coupon per Period: $50.00
Premium/Discount: $$-20.00 (-2.00%)
Total Periods: 10 payments
Yield Analysis
Example Calculation
Corporate Bond Example
Bond Price: $980
Face Value: $1,000
Annual Coupon Rate: 5%
Frequency: Annual (1)
Years to Maturity: 10 years
Yield Results
• YTM: 5.26% (iterative calculation)
• Current Yield: 5.10% ($50 ÷ $980)
• Nominal Yield: 5.00% (coupon rate)
• Effective Yield: 5.26% (annual)
Types of Bond Yields
Yield to Maturity
Total return if held to maturity
Most comprehensive yield measure
Current Yield
Annual coupon ÷ current price
Simple income return
Nominal Yield
Stated coupon rate
Fixed at bond issuance
Effective Yield
Annual yield with compounding
Accounts for payment frequency
Bond Yield Tips
YTM considers both income and capital gains
Current yield only measures income return
Higher yields indicate higher risk or discount
Bond yields move inversely to prices
Understanding Bond Yield Calculation
What is Bond Yield?
Bond yield represents the return an investor can expect from a bond investment. Different yield measures provide different perspectives on the bond's return potential, from simple income yield to total return including capital gains or losses.
Yield vs. Price Relationship
- •Bond prices and yields move inversely
- •Rising interest rates decrease bond prices
- •Credit quality affects yield spreads
- •Maturity length impacts yield sensitivity
Yield Calculation Methods
Current Yield = Annual Coupon / Current Price
YTM: Complex iterative calculation
- Current Yield: Simple income return calculation
- YTM: Internal rate of return (IRR) of bond
- Nominal Yield: Fixed coupon rate
- Effective Yield: Compounded annual return
Note: YTM assumes reinvestment of coupons at the same yield rate.