Calculator Inputs
Formula Used
Current Yield = Annual Coupon Income / Market Price × 100
Dirty Price Yield = Annual Coupon Income / Dirty Price × 100
After Tax Yield = Net Annual Income / Total Dirty Cost × 100
Real Yield = ((1 + After Tax Yield) / (1 + Inflation Rate) - 1) × 100
Approximate YTM = (Annual Coupon + ((Redemption Value - Market Price) / Years)) / ((Redemption Value + Market Price) / 2) × 100
How To Use This Calculator
Enter the bond face value, market price, and coupon rate. Add annual coupon amount only when you already know the exact cash payment. Enter accrued interest, commission, tax rate, inflation rate, maturity years, and redemption value. Press the calculate button. The result will appear above the form.
Example Data Table
| Case | Face Value | Market Price | Coupon Rate | Annual Coupon | Current Yield |
|---|---|---|---|---|---|
| Discount Bond | $1,000 | $950 | 5% | $50 | 5.2632% |
| Par Bond | $1,000 | $1,000 | 5% | $50 | 5.0000% |
| Premium Bond | $1,000 | $1,080 | 5% | $50 | 4.6296% |
Current Yield Financial Calculator Guide
Understanding Current Yield
Current yield shows the income a bond gives today. It compares annual coupon income with the market price. This makes it useful when a bond trades above or below face value. A high coupon does not always mean a strong yield. Price, fees, taxes, and accrued interest change the real picture.
Why Market Price Matters
Bonds often trade at discounts or premiums. A discount can raise current yield, because you pay less for the same coupon. A premium can lower it, because the income is spread over a higher cost. This calculator lets you use clean price and dirty price. Clean price excludes accrued interest. Dirty price includes accrued interest and better reflects cash paid at purchase.
Advanced Income Review
The tool estimates annual coupon income, total position cost, current yield, dirty price yield, after tax yield, and inflation adjusted yield. It also shows premium or discount against face value. The approximate maturity yield gives an extra view. It is not a full bond pricing engine. It is a practical estimate for comparing income choices quickly.
Electrical Category Use
Many websites group finance tools inside broad technical categories. This page follows the requested Electrical category. The logic still remains financial. It helps investors, students, and analysts test coupon income against cost. It can also support spreadsheet checks for income portfolios.
Reading The Results
Use current yield for simple income comparison. Use after tax yield when taxable interest matters. Use dirty price yield when you must include accrued interest. Use real yield when inflation reduces purchasing power. Always review credit risk, call risk, maturity date, and liquidity before relying on yield alone.
Practical Notes
Current yield ignores capital gains and losses at maturity. A bond bought at a discount may return face value later. A bond bought at a premium may lose value at maturity. That is why the calculator also includes an approximate maturity yield. Use all outputs together. They give a clearer view than one percentage alone.
For record keeping, exports save the same figures shown on screen. The CSV file is useful for spreadsheets. The PDF file is useful for sharing. Keep source inputs with each report, so another person can verify assumptions later easily.
FAQs
What is current yield?
Current yield measures annual coupon income compared with the current market price. It shows income return, not total return. It does not include capital gain or loss at maturity.
Is current yield the same as yield to maturity?
No. Current yield only uses annual coupon income and market price. Yield to maturity also considers maturity value, time, and price gain or loss.
Why does dirty price yield matter?
Dirty price includes accrued interest. It better reflects the cash paid when buying a bond between coupon dates. That can slightly reduce the measured income yield.
Can I use annual coupon instead of coupon rate?
Yes. Enter the annual coupon amount if you know it. The calculator will use it directly. Enter zero when you want the coupon amount calculated from face value and coupon rate.
Does this calculator include taxes?
Yes. It estimates after tax yield using your tax rate. Actual tax treatment can vary by bond type, location, and investor status.
Why include inflation rate?
Inflation reduces purchasing power. The real yield estimate adjusts after tax yield for inflation. It helps show whether income may keep its value.
What does premium or discount mean?
A premium means market price is above face value. A discount means market price is below face value. This affects yield and maturity return.
Can I export the result?
Yes. After calculation, use the CSV or PDF buttons. CSV helps with spreadsheets. PDF helps with printing, saving, or sharing simple reports.