## About This Tool

The online Bond Yield Calculator is used to calculate the current bond yield.

## Current Bond Yield Definition

Current bond yield is the ratio of the annual interest payment and the bond's current clean price. The current yield only therefore refers to the yield of the bond at the current moment. The current yield is also known as interest yield, income yield, flat yield or running yield.

## Formula

The current bond yield calculation formula is as following:

Current bond yield = Annual interest payment / Clean price

## Example

To calculate the current yield of a bond with a face value of $1000 and a coupon rate of 4% that is selling at $900 (clean, not including accrued interest), use:

1. Annual interest payment = 1000 × 4% = 40

2. Current bond yield = Annual interest payment / bond's current clean price = 40 / 900 = 4.44%