Bond yield calculator
Work out a bond's current yield and yield to maturity from its coupon, price and years left, for gilts, Treasuries or any fixed-rate bond. Free, no sign-up, nothing leaves your browser.
Assumes you buy on a coupon date, hold to the end and every payment is made. Fees, tax and accrued interest are left out. The starting numbers are only an example.
Coupon, price and yield
A bond pays a fixed amount of interest, called the coupon, on its face value, and pays the face value back on a set date. Once it trades, its price moves. When the price falls, a new buyer gets the same coupons for less money, so the yield rises, and the other way round.
Current yield and yield to maturity
The current yield is just the yearly coupon divided by the price. The yield to maturity also counts the gain or loss between the price paid and the face value returned at the end, so it is the fuller measure of what a bond returns if held to the end and every payment is made.
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