📘 How to Use the Bond Yield Calculator

This calculator helps you estimate the annual yield of a bond based on its purchase price, coupon rate, and time to maturity.

Steps:

• Enter the bond’s face/par value (usually $1,000).
• Enter the annual coupon payment (e.g. $50 for 5% on $1,000).
• Enter the price you paid for the bond.
• Enter the number of years to maturity.
• Click “Calculate” to view your estimated current yield and yield to maturity (approximate).

Example: If you purchase a bond with a $1,000 face value for $950, and it pays $49 annually with 10 years to maturity:

• Current Yield = 5.16%
• Approx. Yield to Maturity = 5.54%

Note: The yield to maturity is higher than the current yield when the bond is purchased at a discount, because you're also gaining the difference between purchase price and face value over time.