This bond yield calculator can help you figure out the current bond yield, as well as the bond yield to maturity. The calculator requires several inputs including the current bond price, par value, coupon rate and years until maturity.
The variables used in our online calculator are defined in detail below, including how to interpret the results.
This is the current selling price, or the market price of the bond. This is the price you'd have to pay to acquire this particular bond.
This is the bond's par value. The par value of a bond is also known as the bond's face value or redemption value. This is the value the investor would receive for the bond on its maturity date.
The bond coupon rate is the rate of interest paid by the bond based on the bond's par value. For example, a bond with a par value of $1,000, and a coupon rate of 8%, would pay the bearer of the bond $80 per year.
The years until maturity is simply the number of years remaining until the bond reaches maturity. The years until maturity are needed to calculate the bond yield to maturity.
The current bond yield is the effective rate of interest paid to the bondholder. This calculation is based on the price paid for the bond and the interest payments made on the bond.
The bond yield to maturity is the total yield realized by the bearer of the bond, if they were to hold the bond until its maturity date. The bond yield to maturity considers the difference in the bond's current price and its par value, as well as the rate of interest paid on the bond.
Bond Yield Calculator - Copyright © 2006 - 2011 Money-Zine.com
Disclaimer: These online calculators are made available and meant to be used as a screening tool for the investor. The accuracy of these calculations is not guaranteed nor is its applicability to your individual circumstances. You should always obtain personal advice from qualified professionals.