How Current Yield Is Calculated . If an investor buys a 6% coupon rate bond for a discount of $900, the investor earns an annual interest income of ($1,000 X 6%), or $60.

How to Calculate Bond Current Yield. When looking at bond current yield, the only two metrics that matter are the bond’s current price and its coupon rate. Again, this is because current yield only ...

While the current yield and yield-to-maturity (YTM) formulas may be used to calculate the yield of a bond, each method has a different application—depending on an investor’s specific goals ...

Yield to maturity (YTM) estimates annual bond returns assuming it's held until maturity. Calculating YTM requires current price, face value, coupon rate, maturity, and periods until maturity. YTM ...

The tax-equivalent yield formula can be a useful tool for comparing taxable and tax-free bond investments. ... The current yield of a bond is the coupon yield, divided by the current market price.

Current Yield . The current yield of a bond is calculated by dividing the annual coupon payment by the bond’s current market value.Because this formula is based on the market value or purchase ...