Bond current yield
Annual coupon income divided by the bond purchase price.
How this works
Current yield = annual coupon amount ÷ current purchase price × 100%. Enter the total cash coupon paid in one year, not the coupon percentage. The purchase price must be positive and use the same currency as the coupon.
Example
The illustration may use different inputs from the reproducible default inputs listed below.
The default annual coupon is $50 and the entered purchase price is $950: $50/$950 × 100. With all reset-default inputs, current yield: 5.2632%.
- Annual coupon paid ($)
- 50
- Current purchase price ($)
- 950
- Current yield
- 5.2632%
Scope and assumptions
Current yield is not yield to maturity or total return. It excludes price gains or losses, default risk, accrued interest, fees, taxes and reinvestment. No bond prices or issuer data are retrieved.
Investor.gov — financial tools and calculators