Finance
Bond Yield Estimate Calculator
Roughly estimate current yield and yield to maturity for a bond.
Formula
Current yield is coupon divided by price; yield to maturity is approximated by coupon plus (face minus price over years), divided by the average of face and price.
How it works
This yield-to-maturity figure is an approximation, not the exact internal rate of return. It assumes coupons are held to maturity and the bond is redeemed at face value.
FAQs
Why does yield rise when price falls?
The same coupon on a lower price is a higher percentage return.
What is the difference between the two yields?
Current yield ignores the gain or loss at maturity; yield to maturity includes it.
Is the coupon fixed?
For most plain bonds, yes — that is why price moves when rates move.
Are these figures financial advice?
No — they are estimates for planning only, not financial advice. Check with a qualified adviser for decisions involving large sums.
Estimates only, not financial advice. Figures are approximate and do not include all fees, taxes, or changing rates unless stated.