Inputs
Formula Used
Current Yield measures the income return from a bond relative to its price today and ignores price appreciation or pull-to-par.
Annual Coupon = (Coupon Rate / 100) × Face Value
Current Yield = (Annual Coupon / Current Market Price) × 100%
Because it uses the current market price in the denominator, the yield rises when price falls and falls when price rises. This is distinct from yield to maturity, which accounts for time value, reinvestment, and redemption at par.
How to Use
- Enter the bond’s face value, coupon rate, and current market price.
- Optionally pick a currency and frequency for clarity.
- Press Calculate to compute annual coupon and current yield.
- Explore the price–yield graph to see sensitivity across a range of prices.
- Export your results as CSV or PDF for documentation or sharing.
- Try the example bonds table and modify any field to match your case.
Results
Annual Coupon—
Current Yield—
Price vs Par—
| Metric | Value |
|---|---|
| Face Value | — |
| Coupon Rate | — |
| Annual Coupon | — |
| Current Price | — |
| Current Yield | — |
| Frequency | — |
Price–Yield Curve
Shows how current yield changes as price moves from a discount to a premium.
Example Bonds
| Label | Face | Coupon % | Price | Load |
|---|---|---|---|---|
| Corporate A | 1000 | 6.00 | 950 | |
| Treasury B | 100 | 3.25 | 101.5 | |
| Municipal C | 5000 | 4.50 | 4860 | |
| Zero D | 1000 | 0.00 | 620 |
FAQs
No. Current yield uses only today’s coupon divided by today’s price. Yield to maturity incorporates time value of money, reinvestment of coupons, and redemption at par.
Not directly. Current yield is based on the annual coupon amount, regardless of whether it is paid monthly, quarterly, or semiannually. Frequency matters for YTM and accrued interest calculations.
For comparability, current yield is usually quoted using clean price (excluding accrued interest). Dirty price will slightly understate yield when positive accrual exists.
Yes. With no periodic coupon, annual income is zero, so current yield is zero, even though yield to maturity may be positive due to price appreciation toward par.
It’s a quick income comparison but incomplete. Differences in time to maturity, credit risk, call provisions, and tax treatment mean yield to maturity or tax‑equivalent yield often provide a fuller picture.
At a premium price, the current yield is below the coupon rate. At a discount price, the current yield is above the coupon rate. At par, both are equal.
The metric itself is pre‑tax. For after‑tax comparisons, adjust the annual coupon for your marginal tax rate or use tax‑equivalent yield when comparing taxable and tax‑exempt bonds.