📜 Bond Yield Calculator
Calculate a bond’s current yield and an approximate yield to maturity based on its price, coupon, and time to maturity.
Understanding bond yield
A bond’s yield reflects the return an investor earns from holding it. Current yield looks only at income relative to price, while yield to maturity (YTM) also accounts for any gain or loss from the bond’s price converging to face value at maturity.
The formulas
Current Yield = Annual Coupon Payment / Market Price. The approximate YTM formula used here is: [Annual Coupon + (Face Value − Price) / Years to Maturity] / [(Face Value + Price) / 2], a widely used estimate that is close to, but not identical to, the exact YTM found by solving the full present-value bond pricing equation.
This calculator is for general financial education and analysis practice, not investment advice. Exact YTM requires iterative calculation and may differ slightly from this approximation.