Bond Current Yield Calculator
Divide a bond's annual coupon by its current market price to find the current yield, the income return at today's price.
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Enter the coupon and price to see the current yield.
Worked example
With these example inputs:
- Face value$1,000
- Coupon rate6%
- Market price$1,080
Current yield: 5.56%
- Annual coupon$60.00
Frequently asked questions
What does current yield measure?
It is the annual coupon as a percentage of the price you pay, showing the income return now. It ignores any gain or loss from price changes to maturity.
How does it relate to yield to maturity?
Current yield captures only the coupon income. YTM also includes the pull toward face value over time, so the two differ unless the bond trades at par.
What is current yield in simple terms?
It is the yearly income a bond pays compared with its current price. You take the annual coupon and divide it by the market price. It shows the income return you get at today price. It is shown as a percentage for easy comparison.
How is current yield different from the coupon rate?
The coupon rate is based on the bond fixed face value. The current yield is based on the price you actually pay. They are equal only when the price matches the face value. Below face value, the current yield is higher than the coupon rate.
Does current yield show my total return?
No, it shows only the income return at the current price. It ignores any gain or loss when the bond is repaid at maturity. For the full return you would use yield to maturity instead. So treat current yield as just the income piece of the picture.