Bond Yield Calculator
Calculate current yield and yield to maturity for bonds.
Usually $1,000 per bond
Discount
Understanding Bond Yields
Current Yield: Annual coupon payment divided by the current price. Simple but doesn't account for capital gains/losses at maturity.
Yield to Maturity (YTM): The total return if you hold the bond until maturity, including both coupon payments and price changes. This is the most comprehensive measure.
Discount vs Premium: Bonds bought below face value (discount) will have YTM higher than coupon rate. Bonds bought above face value (premium) will have YTM lower than coupon rate.
Interest rate risk: When interest rates rise, existing bond prices fall (and vice versa). Longer-term bonds are more sensitive to rate changes.
This calculator provides estimates for educational purposes only.