What this calculator does
Bond current yield works out the income return a bond offers at its present market price, ignoring capital gain or loss. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
FormulaAnnual coupon = Face value × Coupon rate; Current yield = Annual coupon / Current market price
The inputs explained
| Field | What to enter |
|---|---|
| Face (par) value ($) | A number, measured in your currency. Starts at 1000. |
| Annual coupon rate (%) | A number, measured in %. Starts at 5. |
| Current market price ($) | A number, measured in your currency. Starts at 950. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with face (par) value
Every other input is held at the calculator’s starting values while face (par) value varies. Select any row to load that scenario into the calculator.
How the answer changes with face (par) value
| Face (par) value ($) | Current yield | Annual coupon payment | Reading |
|---|---|---|---|
| 500 | 2.63% | $25.00 | Trading at a premium to face value: current yield is below the coupon rate |
| 750 | 3.95% | $37.50 | Trading at a premium to face value: current yield is below the coupon rate |
| 1,000 | 5.26% | $50.00 | Trading at a discount to face value: current yield is above the coupon rate |
| 1,500 | 7.89% | $75.00 | Trading at a discount to face value: current yield is above the coupon rate |
| 2,000 | 10.5% | $100.00 | Trading at a discount to face value: current yield is above the coupon rate |
| 3,000 | 15.8% | $150.00 | Trading at a discount to face value: current yield is above the coupon rate |