Free Bond Yield Calculator
Calculate the current yield and approximate yield to maturity of a bond.
USD
%
USD
years
Current Yield
5.26%
Approx. Yield to Maturity5.64%
Annual Coupon Payment$50.00
Current Yield vs Years to Maturity
Bond Yield Formulas
Current Yield = Annual Coupon / Market Price × 100%
Approx. YTM = (Coupon + (Face - Price)/n) / ((Face + Price)/2) × 100%
The YTM approximation gives a reasonable estimate without iterative calculation.
Example Calculation
$1,000 bond with 5% coupon trading at $950, maturing in 10 years.
- 01Annual coupon = $1,000 × 5% = $50
- 02Current yield = $50 / $950 = 5.26%
- 03Approx. YTM = ($50 + ($50/10)) / (($1,000 + $950)/2) = $55 / $975 = 5.64%
Frequently Asked Questions
Learn More
How to Calculate Mortgage Payments
Learn how to calculate mortgage payments step by step. Understand the mortgage payment formula, principal vs. interest breakdown, escrow, PMI, and how to use amortization schedules.