Current Yield Calculator: Easily Determine Bond Investment Returns
Type the bond’s annual coupons and its current market price—the calculator shows the yield as a percentage in one click. U.S. corporate bonds averaged $46 billion in daily trading during 2023 (SIFMA, 2023), so knowing yield quickly matters.
Current Yield Calculator
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How to use the tool
Fill “Annual Coupons”: enter the total yearly payments, e.g. 80 or 45 dollars.
Fill “Current Bond Price”: type today’s market price, e.g. 1 040 or 890 dollars.
Press “Calculate”: the tool outputs current yield instantly.
Interpret: a higher yield signals more income for every dollar invested today.
Formula used
The calculator applies:
$$
rac{\text{Annual Coupon Payment}}{\text{Current Bond Price}}\times100\%
$$
Example A
Coupons = $80
Price = $1 040
Yield = $$ rac{80}{1040}\times100\% = 7.69\%$$
Example B
Coupons = $45
Price = $890
Yield = $$ rac{45}{890}\times100\% = 5.06\%$$
Quick-Facts
Average U.S. corporate bond trade size: $46 billion/day (SIFMA, 2023).
FINRA recommends checking current yield before purchase (FINRA Bond Basics, 2024).
2024 Treasury note coupons range 0.125 %–3.875 % (TreasuryDirect.gov, 2024).
Bond prices quote as % of $1 000 par, usually to 1/32nd (CME Group Treasury Specs, 2023).
FAQ
What is current yield?
Current yield is the bond’s annual coupon divided by its market price, expressed as a percentage. “It shows what the bond pays today, not at maturity” (Investopedia, 2024).
How does current yield differ from yield to maturity?
Yield to maturity includes all future coupons plus capital gain or loss at redemption; current yield looks only at one year’s income (SEC Investor Bulletin, 2022).
Why does yield rise when price falls?
The coupon stays fixed; dividing by a lower price boosts the percentage return, illustrating their inverse relationship (Federal Reserve Education, 2023).
Can current yield be negative?
Yes—if a bond trades above par and carries a zero or very low coupon, the ratio can fall below zero, as seen in some 2020 European issues (ECB Statistical Data Warehouse, 2021).
Does the tool account for taxes?
No. It delivers pre-tax yield; tax impact depends on your marginal rate and bond type (IRS Pub. 550, 2023).
How often should you update the inputs?
Update whenever market prices move; bond prices can change hundreds of times a day in active issues (Bloomberg Market Data, 2024).
Where can you find reliable coupon and price data?
Use FINRA’s TRACE system for corporate bonds or TreasuryDirect for government securities; both publish daily price feeds (FINRA TRACE Fact Book, 2023).
Is current yield useful for floating-rate bonds?
Less so. Floating coupons reset periodically, so today’s payment may not reflect future income (Bank for International Settlements, 2023).
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