Bond Current Yield Calculator
Find the current yield of a bond — the simplest measure of income return — by dividing the annual coupon by the current market price.
% p.a.
At a discount — current yield > coupon rate
5.26 %
Current yieldAnnual coupon
5.3%
Remaining price
94.7%
- 1
Annual coupon income
1,000 × 5% ÷ 100 = 50 - 2
Current yield
50 ÷ 950 × 100 = 5.2632Annual coupon as a percentage of what you pay for the bond today.
How does this calculator work?
Current yield = Annual Coupon / Market Price. It tells you the income return you earn at today's price, without accounting for capital gain or loss at maturity. A bond at a discount has a current yield above its coupon rate; at a premium, below it. For a full return measure including maturity, use YTM.
Formula
How this is calculated
The current yield is the most straightforward bond yield measure: it tells you how much annual coupon income you receive relative to what you pay for the bond today. If a bond with a $1,000 face value pays a 5% coupon ($50/year) but trades at $950, the current yield is $50 / $950 = 5.26% — higher than the stated coupon rate because you paid less than par.
The relationship between price and coupon rate determines the current yield: when the market price equals face value (at par), current yield equals the coupon rate; when the bond trades at a discount (price < par), current yield is above the coupon rate; when it trades at a premium (price > par), current yield is below it. This makes current yield useful as a quick income-return gauge without complex discounting.
Limitation: current yield ignores capital gain or loss at maturity. If you buy a discount bond at $950 and receive $1,000 at maturity, the $50 capital gain is not captured by current yield — for that you need yield to maturity (YTM). Use current yield for comparing the income component of bonds with similar maturities and credit risk.
Frequently asked questions
Current yield measures only the annual coupon relative to today's price, ignoring the capital gain or loss when the bond matures at par. YTM accounts for all cash flows — coupons and the face-value redemption — discounted to present value. YTM is a more complete measure of total return.
When market interest rates rise above the bond's coupon rate, new bonds offer better income, making the existing bond less attractive. Its price falls until the current yield (and YTM) match the new market rate. Conversely, when rates fall, existing bonds with higher coupons trade at a premium.
Not necessarily. A high current yield often signals higher credit risk or a bond trading far below par. Always consider the issuer's creditworthiness, the maturity date, and the full YTM alongside the current yield.
TG we-Calculate Editorial Team. (2026). Bond Current Yield Calculator [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/bond-yield-calculator
TG we-Calculate Editorial Team. "Bond Current Yield Calculator." TG we-Calculate. 2026. https://we-calculate.com/calculator/bond-yield-calculator.
TG we-Calculate Editorial Team, "Bond Current Yield Calculator," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/bond-yield-calculator
@misc{wecalculate_bond_yield_calculator, title = {Bond Current Yield Calculator}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/bond-yield-calculator}}, year = {2026}, note = {TG we-Calculate} }
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