Current yield is an investment's annual income (interest or dividends) divided by the current price of the security. this measure looks at the current price of a bond instead of its face value .. The current yield is .0619 or 6.19%, here's how to calculate: ($57.50 coupon / $928.92 current price). the yield to maturity is the yield earned on a bond based on the cash flows promised from the date of purchase until the date of maturity; whereas, the current yield is the annual coupon income divided by the current price of the bond.. To calculate a bond's yield to maturity, enter the face value (also known as "par value"), the coupon rate, the number of years to maturity, the frequency of payments and the current price of the bond..
You can use this bond yield to maturity calculator to calculate the bond yield to maturity based on the current bond price, the face value of the bond, the number of years to maturity, and the coupon rate. it also calculates the current yield of a bond. fill in the form below and click the "calculate" button to see the results.. This is a simple example for the calculation of current yield and yield to maturity of a bond.. This video from n s toor school of banking, explains the concept of yield to maturity. it also provides a case study to understand the concept of ytm.
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