What is a good bond yield?

In 2024, 10-year US Treasuries yield ~4.5%. Investment-grade corporates: 5–6%. High-yield (junk) bonds: 7–10%+. A bond yielding significantly more than Treasuries carries more credit risk.

What is the difference between current yield and YTM?

Current yield only measures the coupon relative to price. YTM also includes the gain or loss from buying at a discount or premium and holding to maturity — it's the true total return if you hold the bond to maturity.

What does it mean when a bond trades at a discount vs. premium?

Discount: price below face value (e.g., $950 for a $1,000 bond) — happens when market rates exceed the coupon rate. Premium: price above face value (e.g., $1,050) — happens when coupon rate exceeds market rates.

Are bond yields taxable?

Corporate and Treasury bond interest is taxable as ordinary income. Municipal (muni) bond interest is typically exempt from federal income tax and often state taxes if you live in the issuing state. This makes munis attractive for high-income investors.

Bond Yield Calculator — Current Yield & YTM | KalkWise

By the KalkWise Editorial Team Reviewed for accuracy Updated June 2026

What is the bond yield calculator — current yield & ytm?

In short

Bond current yield = annual coupon ÷ market price × 100. Yield to maturity (YTM) accounts for price discount/premium over time. A $1,000 face value bond with 5% coupon priced at $950 has a 5.26% current yield and ~5.8% YTM.

Calculates the current yield and approximate yield to maturity (YTM) of a bond from its face value, coupon rate, market price, and years to maturity.

How to use this calculator

1Enter the face value (typically $1,000 per bond).
2Enter the annual coupon rate (printed on the bond).
3Enter the current market price you would pay.
4Enter the years remaining until the bond matures.

The formula

Current Yield=CP×100

YTM≈C+F−PnF+P2×100

Current Yield = C ÷ P × 100; YTM ≈ (C + (F − P) ÷ n) ÷ ((F + P) ÷ 2) × 100

C: — Annual coupon payment
P: — Market price
F: — Face value
n: — Years to maturity

Worked example

The scenario

$1,000 face value bond, 5% coupon, priced at $950, 10 years to maturity.

gives

The result

Annual coupon: $50. Current yield: 5.26%. YTM: ~5.79%. Total return over 10 years: $550 (coupons + $50 principal gain).

Common use cases

Compare bonds with different prices to find the best yield.
Evaluate whether a bond offers better return than a savings account or CD.
Understand how rising interest rates affect existing bond prices.
Screen corporate or municipal bonds by yield.

Limitations & assumptions

YTM formula used is the approximation — the exact YTM requires numerical methods (Newton-Raphson).
Does not account for call features, default risk, or reinvestment rate assumptions.
Tax treatment differs: municipal bond interest is typically tax-exempt, corporate bond interest is taxable.
Inflation erodes real bond returns — compare YTM to TIPS yields for real return.

Frequently asked questions

New bonds are issued at the higher rate, making existing lower-coupon bonds less attractive. Their prices fall until the yield matches the market rate. A 5% bond when rates rise to 6% might fall to ~$916, pushing the yield up to 6%.

Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.