Bond Yield Calculator

Bonds are debt securities that provide regular income through coupon payments and potential capital gains. Our calculator helps you understand different yield metrics and total returns from bond investments.

The calculator computes current yield (annual income relative to current price) and yield to maturity (total return if held until maturity), helping you make informed bond investment decisions.

Bond Yield Types:

• Current Yield: Annual coupon payment ÷ Current market price
• Yield to Maturity (YTM): Total return if held until maturity
• Coupon Rate: Annual interest rate paid on face value

Bond Pricing:

• Premium: Trading above face value (current price > face value)
• Discount: Trading below face value (current price < face value)
• At Par: Trading at face value (current price = face value)

Bond Investment Benefits:

• Regular Income: Predictable coupon payments
• Capital Preservation: Principal returned at maturity
• Diversification: Low correlation with equity markets
• Tax Benefits: Some bonds offer tax advantages

Types of Bonds:

• Government Bonds: Lowest risk, backed by government
• Corporate Bonds: Higher yield, higher credit risk
• Tax-Free Bonds: Interest income is tax-free
• Inflation-Indexed Bonds: Principal adjusted for inflation

Features:

• Current yield and YTM calculation
• Annual coupon income analysis
• Capital gain/loss assessment
• Yearly income breakdown
• Premium/discount identification