Bond Current Yield Calculator
Compute a bond's current yield from its face value, coupon rate and current market price.
Input Data
Results
At a glance:Current yield is the annual coupon divided by the current market price: current yield = (face value x coupon rate / market price) x 100% = annual coupon / market price. Example: face value HK$100, coupon 5%, market price HK$98 gives an annual coupon of HK$5 and a current yield of 5/98 = 5.10%. WARNING: Current yield ignores the gain or loss to maturity (YTM), the time value of money and reinvestment risk; it assumes annual payment. Bond prices and yields move inversely.
Formula
Current yield = annual coupon payment / current price.
For semi-annual coupons: annual coupon = coupon rate × face value.
How to Use
- Enter the bond's face value, coupon rate and current market price.
- View the annual coupon and the current yield.
- For a fuller picture, use yield to maturity or the bond price calculator.
FAQ
What is current yield?
Current yield is the annual coupon divided by the current market price. It shows the annual return from coupons relative to what you pay today, without considering capital gain or loss to maturity.
Why does current yield differ from the coupon rate?
The coupon rate is based on face value, but current yield is based on the market price paid. Buying below par makes the current yield higher than the coupon rate; buying above par makes it lower.
Does current yield equal the total return?
No. It ignores any capital gain or loss if held to maturity (captured by yield to maturity), the time value of money and reinvestment risk. It is a quick coupon-to-price comparison only.
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References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.