Tool Slick

Bond Yield Calculator

Bond Yield Calculator is used to calculate the ratio of the annual interest payment and the bond's current clean price

All processing happens on the client-side, locally in your browser. No data is uploaded.

The current bond price
The bond per value amount
The bond coupon rate
Current Bond Yield
4.44%

History

  • 2018-05-18Tool Launched

Background

What does Bond Yield mean?
Bond yield is the amount of return an investor realizes on a particular bond. The current yield equals annual earnings of the bond divided by its clean market price.
Importance of Bond Yield
Bond yields are also a measure of the profit made from your bond investment. This is the reason bond yields are a sound indicator of ‘how strong the stock market is and the interest amount in US Dollar’.
Formula
Current Bond Yield = Annual Interest Payment / Clean Price
Example
If you bought a bond having a face value of $100 that is selling at $90 and a coupon rate of 5%, the calculation would look like this:
  1. Annual Interest Payment = 100 × 5% = 5
  2. Current Bond Yield = Annual Interest Payment / Bond's Current Clean Price = 5 / 90 = 5.5%