Bond Current Yield
The annual coupon is fixed at face value times the coupon rate. Divide it by what you paid to get the current yield — the cheaper you buy, the higher it goes.
Your numbers
Current yield
3.261%
Interest
300
Difference
800
What it means
Bought below par, so the 3.261% current yield beats the 3% coupon.
Formula
Current yield = Face value × Coupon rate ÷ 100 ÷ Purchase price × 100
Current yield ignores the price pulling back to par by maturity. If you plan to hold to the end, look at yield to maturity too.
What to enter
| Input | Default | Accepted range |
|---|---|---|
| Face valueThe amount printed on the bond — repaid at maturity. | 10,000 | 1 and up |
| Coupon rate (%)Yearly interest as a share of face value; it is fixed. | 3 | 0 ~ 50 |
| Purchase priceWhat you actually paid, fees included, or the profit maths breaks. | 9,200 | 1 and up |
Step by step
Quick reference table
Results when only Face value changes and everything else stays put.
| Face value | Current yield (%) | Interest | Difference |
|---|---|---|---|
| 5,000 | 1.63 | 150 | -4,200 |
| 7,500 | 2.446 | 225 | -1,700 |
| 10,000 | 3.261 | 300 | 800 |
| 15,000 | 4.891 | 450 | 5,800 |
| 20,000 | 6.522 | 600 | 10,800 |
What each result means
| Result | At default values |
|---|---|
| Current yield (%)The coupon measured against what you actually paid. | 3.261 |
| InterestThe interest earned or owed over the period. | 300 |
| DifferenceThe gap between two values — a quantity, not a rate. | 800 |
Common mistakes
Current yield ignores the price pulling back to par by maturity. If you plan to hold to the end, look at yield to maturity too.
Glossary
- Face value
- The amount printed on the bond — repaid at maturity.
- Coupon rate
- Yearly interest as a share of face value; it is fixed.
- Purchase price
- What you actually paid, fees included, or the profit maths breaks.
- Current yield
- The coupon measured against what you actually paid.
- Interest
- The interest earned or owed over the period.
- Difference
- The gap between two values — a quantity, not a rate.
Frequently asked questions
Q. How is Bond Current Yield calculated?
Current yield = Face value × Coupon rate ÷ 100 ÷ Purchase price × 100 — The annual coupon is fixed at face value times the coupon rate. Divide it by what you paid to get the current yield — the cheaper you buy, the higher it goes.
Q. Can you walk through an example?
With Face value 10,000, Coupon rate 3%, Purchase price 9,200, the answer is Current yield 3.261%.
Q. What do I need to enter?
Enter Face value, Coupon rate, Purchase price. The result recalculates as you type, and an empty box counts as zero.
Q. How much does the answer move if I change a number?
Changing only Face value moves the answer to Face value 5,000 → Current yield (%) 1.63 and Face value 20,000 → Current yield (%) 6.522. The table below lays out five steps.
Q. How are the numbers rounded?
Money is shown to the nearest whole unit, percentages to one decimal place and everything else to two. What you see is rounded; the calculation itself carries the unrounded value forward.
Q. Anything to watch out for?
Current yield ignores the price pulling back to par by maturity. If you plan to hold to the end, look at yield to maturity too.
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