Bond Yield Calculator
Calculate Current Yield and Yield to Maturity for Any Bond
Understanding Bond Yields
Bond yields are crucial metrics that help investors evaluate the return on their bond investments. There are two main types of yields to consider:
Current Yield
The current yield represents the annual income (coupon payments) divided by the current market price of the bond. It provides a snapshot of the immediate return you can expect from your bond investment.
Yield to Maturity (YTM)
YTM is a more comprehensive measure that considers the total return you would receive if you held the bond until maturity. It factors in:
- Coupon payments
- Time to maturity
- Difference between face value and current price