What is Bond Current Yield?
Bond Current Yield Calculator: The Bond Current Yield is a financial metric used to determine the annual return (or yield) an investor earns on a bond based on its current market price. It is calculated as the ratio of the bond's annual coupon payment to its current price.
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How to Calculate Bond Current Yield
The formula to calculate the current yield of a bond is:
Current Yield = (Annual Coupon Payment / Current Price) x 100
For example, if a bond has an annual coupon payment of $50 and a current price of $1,000, the current yield would be:
Current Yield = (50 / 1000) x 100 = 5%