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Results
Current Yield:
0.00%
Annual Income:
$0.00
Yield to Maturity:
0.00%
Total Return:
$0.00
Premium/Discount:
User guide
How Yields Are Calculated
Current Yield measures your annual income return:
Current Yield = (Annual Coupon ÷ Current Price) × 100
Example: A $1,000 bond with 5% coupon ($50) priced at $950 = 5.26%
Yield to Maturity (YTM) is the total return if held to maturity, accounting for:
- Annual interest payments
- Capital gain/loss at maturity
- Time value of money
Approximation formula:
YTM = [Annual Coupon + (Face Value - Price) ÷ Years] ÷ [(Face Value + Price) ÷ 2] × 100
Total Return = (Coupons × Years) + (Face Value – Current Price)
Premium/Discount = Current Price – Face Value
- Positive = Premium bond (trades above par)
- Negative = Discount bond (trades below par)
Payment Frequency Impact
- Annual: One full payment
- Semi-Annual: Half payments twice yearly
- Quarterly: Quarter payments four times yearly
Quick Interpretation
- YTM > Current Yield = Discount bond (good for total return)
- YTM < Current Yield = Premium bond (higher current income)
- Higher YTM typically means higher risk
To compare bonds and make wise investment choices, use this calculator. The calculator is provided “as is” without warranty of any kind.