Current Yield Calculator
Calculate the current yield of a bond by dividing the annual coupon payment by the market price. A quick measure of the income return you earn relative to the bond's current price.
Current Yield Calculator
FAQ
What is current yield?
Current yield is the annual coupon payment divided by the bond's current market price. It gives a snapshot of the income return without considering capital gains or losses at maturity.
When is current yield most useful?
Current yield is most useful for comparing income-generating potential of different bonds quickly. It is especially relevant for investors focused on income rather than total return.
Why does current yield differ from coupon rate?
The coupon rate is based on the bond's face value, while current yield is based on the market price. If a bond trades at a discount, the current yield will be higher than the coupon rate, and vice versa for premium bonds.