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Bond Coupon Payment & Current Yield Calculator

Calculate a regular bond coupon and, in a separate section, current yield from annual coupon cash and market value.

  • 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. Where results are editable, change one to solve backwards. 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 bond with face value 1,000, a 6% annual coupon and two payments per year pays 30 each time. Separately, annual coupons of 60 divided by a market value of 960 give a 6.25% current yield.

Coupon per payment = face value × annual coupon rate ÷ payments per year; current yield = annual coupon cash ÷ market value

Worked example

Enter these known values and leave the other values blank.

Bond face value
1000 USD
Annual coupon rate
6 %
Payments per year
2
Annual coupon cash (separate input)
60 USD
Current market value
960 USD
Coupon per payment
30 USD
Current coupon yield
6.25 %

Assumptions and limitations

  • The coupon and current-yield sections are independent. Enter annual coupon cash explicitly; it does not populate automatically from the per-payment calculation.
  • Assumes equal regular payments. The model accepts one through twelve whole payments per year and a positive coupon rate up to 100%; zero-coupon bonds are outside its input rules.
  • Current yield excludes price gains/losses at maturity, reinvestment, call terms, taxes, fees and default risk. It is not yield to maturity or a forecast of total return.

Common questions

Why must I enter annual coupon cash separately?

The current-yield section can evaluate a different bond or an independently known annual coupon. For the same bond, multiply its payment amount by the number of annual payments and enter that total.

Does a higher current yield mean the bond is better?

The ratio describes coupon cash relative to today’s price. It does not compare credit risk, maturity, liquidity, call features or total investment return.

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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