Bond Yield Calculator
Calculate bond current yield, yield to maturity (YTM), yield to call (YTC), Macaulay and modified duration, accrued interest, clean vs dirty price, after-tax yield, and spread to Treasury.
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Current Yield
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Yield to Maturity (Approx) —
Annual Coupon Payment —
Extended More scenarios, charts & detailed breakdown ▾
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Current Yield
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Annual Coupon Payment —
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Professional Full parameters & maximum detail ▾
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Yield Measures
Yield to Maturity (YTM) —
Yield to Call (YTC) —
After-Tax Yield —
Spread to Treasury (bps) —
Duration & Risk
Macaulay Duration (Years) —
Modified Duration —
Price Components
Accrued Interest —
Clean Price —
How to Use This Calculator
- Enter the face value, coupon rate, market price, and years to maturity for instant current yield and YTM approximation.
- Use the Current Yield tab to see income yield and premium/discount to par.
- Use the Yield to Maturity tab for a precise Newton-Raphson YTM calculation with semi-annual compounding.
- Use the Compare Bonds tab to evaluate two bonds side by side on yield.
- Use the Professional tab for YTC, Macaulay duration, modified duration, accrued interest, clean vs dirty price, after-tax yield, and spread to Treasury in basis points.
Formula
Current Yield = Annual Coupon / Market Price × 100
YTM Approx = (Coupon + (Face − Price)/Years) / ((Face + Price)/2) × 100
Macaulay Duration = Σ(t × PV(CF_t)) / Bond Price
Modified Duration = Macaulay Duration / (1 + YTM/2)
YTM Approx = (Coupon + (Face − Price)/Years) / ((Face + Price)/2) × 100
Macaulay Duration = Σ(t × PV(CF_t)) / Bond Price
Modified Duration = Macaulay Duration / (1 + YTM/2)
Example
Example: $1,000 face, 5% coupon ($50/year), market price $950, 10 years to maturity. Current yield = 5.26%. YTM ≈ 5.59%. Macaulay duration ≈ 7.8 years. Modified duration ≈ 7.6.
Frequently Asked Questions
- Current yield = Annual coupon / Market price. It only measures the income return, ignoring capital gain or loss at maturity. Yield to maturity (YTM) is the total annualized return if you hold the bond to maturity, including the annual coupon plus the gain or loss from buying at a discount or premium. YTM is the more comprehensive measure.
- When interest rates rise, new bonds offer higher coupon rates, making existing bonds with lower coupons less attractive. To compensate, the price of existing bonds falls until their yield is competitive. When rates fall, existing bonds become more valuable, so prices rise and yields fall.
- Macaulay duration is the weighted average time (in years) to receive all cash flows from a bond. It measures interest rate sensitivity — a bond with a duration of 7 years will lose approximately 7% in price for every 1% rise in interest rates (via modified duration). Longer duration = more interest rate risk.
- Yield to call is the return you would earn if the bond is called (redeemed by the issuer) at the first call date rather than held to maturity. Callable bonds often carry call risk — if rates fall, issuers call bonds and reissue at lower rates. YTC tells you the yield under that scenario.
Related Calculators
Sources & References (5) ▾
- SEC — Investor Bulletin: What are Corporate Bonds? — U.S. Securities and Exchange Commission
- TreasuryDirect — U.S. Treasury Marketable Securities — U.S. Department of the Treasury
- Federal Reserve — Treasury Yield Curve (H.15) — Federal Reserve
- FINRA — How Bonds Are Priced — Financial Industry Regulatory Authority
- CFA Institute — Fixed Income Refresher Reading — CFA Institute