Bond Yield Calculator
Calculate current yield, yield to maturity, and yield to call for fixed income investments. Enter values for instant results with step-by-step formulas.
Reviewed by Sahil, Senior Finance & Tax Editor
Reviewed by Sahil, Senior Finance & Tax Editor
Formula
Current Yield = Annual Coupon / Price | YTM ≈ [C + (F-P)/n] / [(F+P)/2]
Current yield is annual income / price. Yield to Maturity (YTM) accounts for the gain/loss if held to maturity. The approximation formula gives a close estimate.
Worked Examples
Example 1: Corporate bond
Problem:$1000 face, 5% coupon, price $950, 10 years
Solution:CY = 50/950 = 5.26%. YTM ≈ (50+5)/975 = 5.64%
Result:YTM ≈ 5.64%
Frequently Asked Questions
What is APY vs APR in crypto yield?
APR is the simple annual rate without compounding. APY includes the effect of compounding. A 10% APR compounded daily equals roughly 10.52% APY. Always compare APY to APY for accurate yield comparisons.
Reviewed by Sahil, Senior Finance & Tax Editor · Editorial policy