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Annual Coupon to Market Price Yield Calculator

Calculate coupon payments and bond current yield from face value and market price.

  • Formula & worked example
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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Edit a calculated value to solve backwards, or lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

A 1,000 face-value bond with a 6% coupon pays 60 annually, or 30 every six months. At a market price of 960, its current yield is 6.25%.

Annual coupon = face value × coupon rate; current yield = annual coupon ÷ bond market price

Worked example

Enter these known values and leave the other values blank.

Face value
1000 USD
Frequency
Semi-annually
Coupon rate
6 %
Bond price
960 USD
Coupon per period
30 USD
Annual coupon
60 USD
Current yield
6.25 %

Assumptions and limitations

  • Current yield compares coupon income with the entered market price. It excludes the gain or loss at sale or redemption, coupon reinvestment, payment timing, fees and taxes. Use a consistent price convention when comparing bonds.
  • Use consistent units, dates and financial definitions. The calculated result follows the stated assumptions and the amounts entered.

Common questions

Why does current yield differ from yield to maturity?

Current yield compares coupon income with the entered market price. It excludes the gain or loss at sale or redemption, coupon reinvestment, payment timing, fees and taxes. Use a consistent price convention when comparing bonds.

References

The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.

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