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Bond Yield Calculator

Calculate current yield, yield to maturity, and total bond returns

Bond Details

Discount: $50.00 below par

5%

Annual coupon: $50.00

Discount Bond

You're buying below face value. You'll receive $50.00 capital gain at maturity.

Current Yield

5.26%

Annual income / Price

Yield to Maturity

5.66%

Total annualized return

Total Return

$550.00

57.89% over 10 years

Total Coupons

$500.00

$50.00/year

Yield Comparison
Bond Value Over Time
Return Breakdown
Cumulative Coupon Income
Yearly Cash Flow
YearCouponBond ValueCumulative IncomeTotal Value
Purchase-$950.00$0.00$950.00
1$50.00$955.00$50.00$1,005.00
2$50.00$960.00$100.00$1,060.00
3$50.00$965.00$150.00$1,115.00
4$50.00$970.00$200.00$1,170.00
5$50.00$975.00$250.00$1,225.00
6$50.00$980.00$300.00$1,280.00
7$50.00$985.00$350.00$1,335.00
8$50.00$990.00$400.00$1,390.00
9$50.00$995.00$450.00$1,445.00
10 (Maturity)$50.00$1,000.00$500.00$1,500.00
Understanding Bond Yields

Yield Types Explained

  • Coupon Rate: Fixed interest rate stated on the bond
  • Current Yield: Annual coupon divided by current price
  • Yield to Maturity (YTM): Total return if held to maturity, including capital gains/losses

Key Considerations

  • When prices rise, yields fall (inverse relationship)
  • Discount bonds have YTM greater than coupon rate
  • Premium bonds have YTM less than coupon rate
  • Zero-coupon bonds only pay at maturity