Bond Yield Calculator

Calculate current yield and yield to maturity (YTM) from bond price, coupon rate, and maturity.

By Konstantin Iakovlev · Updated April 2026 · Source: SEC

$
%
$
years

Current Yield

5.26%

Approx. YTM

5.64%

Bond Status

Discount

Below face value

Bond Analysis

Face Value$1,000.00
Purchase Price$950.00
Annual Coupon Payment$50.00
Current Yield5.26%
Approximate YTM5.64%
Total Coupon Income$500.00
Capital Gain / Loss at Maturity$50.00
Total Return$550.00

Current yield measures annual income relative to the purchase price. Yield to maturity (YTM) accounts for both coupon income and the gain or loss at maturity. The YTM shown is an approximation.

Use the Bond Yield Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Two numbers tell you most of what a bond will return: its current yield and its yield to maturity (YTM). Both are worth pinning down as conditions move toward 2026 and the market prices in expected interest rate adjustments. With them in hand, an investor can line up competing bonds and weigh fixed-income choices on common ground rather than guesswork.

Current yield is the simpler of the two: divide the annual coupon payment by the bond's current market price. YTM asks more of the math, capturing the full return you would earn by holding the bond to maturity while weighing its current market price, par value, coupon interest rate, and time to maturity all at once. Because no clean algebraic solution exists, the calculator solves for YTM through an iterative approximation.

One assumption baked into YTM is that every coupon payment gets reinvested at the same yield, which real markets do not guarantee. Callable bonds add their own wrinkle, since the issuer can redeem them before maturity and change the yield you actually collect. Read any yield figure alongside the issuer's creditworthiness and the prevailing rate environment to know what it is really telling you.

Example: Investing in a 2026 Corporate Bond

  1. 1 Imagine you're considering a corporate bond maturing in December 2026, with a face value of $1,000 and a 4.5% annual coupon rate. The bond is currently trading at $980.
  2. 2 First, calculate the annual coupon payment: $1,000 * 4.5% = $45. The current yield is $45 / $980 = 4.59%. To calculate YTM, we use the bond's current price ($980), par value ($1,000), annual coupon ($45), and the remaining time to maturity (let's say 2 years, assuming it's December 2024).
  3. 3 Using the calculator, the current yield is approximately 4.59%, and the yield to maturity (YTM) is approximately 5.61%.
  4. 4 The higher YTM compared to the current yield indicates that the bond is trading at a discount, offering a capital gain if held until maturity. This information helps you assess if the 5.61% annualized return meets your investment objectives for a bond maturing in 2026.

Source: SEC · Last updated: April 2026

Frequently Asked Questions

What is the difference between current yield and yield to maturity?
Current yield is simply the annual coupon payment divided by the bond current price. Yield to maturity (YTM) also accounts for the gain or loss if you hold the bond until maturity, making it a more complete measure of return.
Why do bond prices go down when interest rates go up?
When new bonds offer higher rates, existing bonds with lower rates become less attractive, so their prices drop to compensate. A 1% rate increase can cause a 10-year bond to lose about 8-9% of its value.
What is a good bond yield in 2026?
In 2026, US Treasury yields range from about 4.0% (2-year) to 4.5% (10-year). Investment-grade corporate bonds yield 5-6%, and high-yield bonds offer 7-9%. Municipal bonds yield 3-4% tax-free.

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