Bond Yield Calculator

Current Yield is an investment's annual income (interest or dividends) divided by the current price of the security. It represents the return an investor expects if they buy and hold.

Yield to Maturity (YTM) accounts for the total return including capital gains or losses if held until the end, whereas Current Yield only looks at the annual interest income.

Bond yields change as the market price of the bond fluctuates. As price goes down, the yield goes up because the fixed interest payment becomes a larger percentage of the cost.