Bond yield calculator
Enter a bond's face value, coupon rate, market price and years to maturity, and choose whether it pays coupons once or twice a year. The calculator returns the current yield and the yield to maturity, which includes the gain or loss you get when the bond is repaid at face value.
Runs in your browser: nothing you enter is sent anywhere.
How to use it
- Enter the face value, the coupon rate and the current price.
- Enter the years to maturity and choose annual or semiannual coupons.
- Read the current yield and the yield to maturity.
How it works
With n coupon periods, coupon C = face × rate ÷ payments a year, and periodic yield y, the price is Σ C ÷ (1 + y)^t + face ÷ (1 + y)^n. The tool solves for y by bisection. The quoted YTM is y × payments a year; the effective yield is (1 + y)^payments − 1.
Worked example
A zero-coupon bond with face value 1,000 and price 500 repaid in 10 years: 500 × (1 + y)^10 = 1,000, so y = 2^0.1 − 1 = 7.177%. A 5% bond priced at par has a yield to maturity of exactly 5%.
Tips
- Price and yield move in opposite directions.
- Compare bonds by YTM, not by coupon rate.
- Results assume repayment at face value on schedule.
Frequently asked questions
What is the current yield?
Current yield = annual coupon income ÷ current price. A 1,000 bond with a 5% coupon pays 50 a year; at a price of 950 the current yield is 50 ÷ 950 = 5.263%.
What is yield to maturity?
It is the single rate at which all remaining coupons and the face value, discounted, add up to the current price. It assumes you hold to maturity and the issuer pays in full.
How is YTM calculated here?
The tool searches for the periodic yield that makes the discounted coupons plus face value equal the price, using bisection, then multiplies by the number of coupons a year. That is the usual bond-equivalent quote. The effective figure compounds the periodic yield over a year.
Why is YTM higher than the coupon rate for a discount bond?
Buying below face value means you also gain when it is repaid at par, which adds to the coupon income. A bond at par has a yield equal to its coupon rate.
Does it handle taxes, call dates or accrued interest?
No. It assumes the price is clean at a coupon date, no early call, and ignores taxes and fees.