Calculate bond yields including current yield, yield to maturity, coupon income, and capital gains.
Current Yield
5.26%
Yield to Maturity
5.64%
Annual Coupon
$50
Total Coupon Income
$500
Capital Gain/Loss
$50
Bond Rating
Premium Bond
| Year | Coupon | Principal | Total |
|---|---|---|---|
| Year 1 | $50 | - | $50 |
| Year 2 | $50 | - | $50 |
| Year 3 | $50 | - | $50 |
| Year 4 | $50 | - | $50 |
| Year 5 | $50 | - | $50 |
| Year 6 | $50 | - | $50 |
| Year 7 | $50 | - | $50 |
| Year 8 | $50 | - | $50 |
| Year 9 | $50 | - | $50 |
| Year 10 | $50 | $1,000 | $1,050 |
The annual coupon payment divided by the purchase price. It measures the return generated from coupon payments alone, without considering capital gains or losses at maturity.
The total return anticipated on a bond if held until maturity. It accounts for coupon payments, the face value, and any capital gain or loss from the purchase price to maturity.
Bonds are rated based on their yield relative to market rates. Investment-grade bonds offer moderate yields with lower risk, while high-yield bonds offer higher returns but carry more default risk.
Always compare bond yields to market rates
Higher yields often mean higher risk
Look at the issuer's creditworthiness
Avoid selling early to lock in YTM