Current Bond Yield Calculator

Formula

The formula to calculate Current Bond Yield (CBY) is:

\[ \text{CBY} = \frac{\text{Coupon Payment}}{\text{Current Bond Price}} \]

Where:

\(\text{CBY}\) represents the prevailing interest rate that a bond or fixed-income security is delivering to its owners
\(\text{Coupon Payment}\) is a periodic interest payment that the bondholder receives during the time between when the bond is issued and when it matures
\(\text{Current Bond Price}\) is the present discounted value of the future cash stream generated by a bond

Current Bond Yield represents the prevailing interest rate that a bond or fixed-income security is delivering to its owners.

Let's assume the following values:

Using the formula:

\[ \text{CBY} = \frac{20}{150} \]

Evaluating:

\[ \text{CBY} = 0.133333333333333 \]

The Current Bond Yield is 0.133333333333333.