Bond Yield Calculator
Calculate current yield, yield to maturity (YTM), and total return for any bond.
Bond Yield Quick Reference
| Bond Type | Typical Yield (2026) | Risk Level | Note |
|---|---|---|---|
| US Treasury 3-month | 4.8% | Risk-free | Benchmark rate |
| US Treasury 2-year | 4.5% | Risk-free | Sensitive to Fed policy |
| US Treasury 10-year | 4.3% | Risk-free | Benchmark for mortgages |
| US Treasury 30-year | 4.5% | Risk-free | Long duration, rate-sensitive |
| Investment-grade corp (AAA) | 5.0–5.5% | Very low | Spread ~70–120 bps over T |
| Investment-grade corp (BBB) | 5.5–6.0% | Low | Lowest IG tier |
| High-yield "junk" (BB) | 7.0–8.0% | Medium | Below investment grade |
| Municipal (10Y) | 3.2–3.8% | Low | Tax-exempt; effective yield higher |
Yields are illustrative for 2026 — check current rates at TreasuryDirect.gov or FINRA for live data.
How to Calculate Bond Yield — Step by Step
Bond yield measures your return on investment. There are three types: current yield, yield to maturity (YTM), and yield to call. YTM is the most important.
- 1Current Yield = Annual Coupon ÷ Current Price. A $1,000 face value bond with 5% coupon ($50/year) trading at $950: Current Yield = $50 ÷ $950 = 5.26%. Simple but ignores maturity value.
- 2YTM accounts for price discount/premium. Approximate YTM = [Annual Coupon + (Face Value − Price)/Years] ÷ [(Face Value + Price)/2]. For the $950 bond maturing in 10 years: YTM ≈ ($50 + $5) ÷ $975 = 5.64%.
- 3Understand the price-yield relationship. When interest rates rise, bond prices fall (and vice versa). A bond with 10-year duration loses approximately 10% of value for each 1% rate increase.
- 4Compare to the yield curve. The yield curve shows returns across maturities. An inverted yield curve (short rates > long rates) has historically preceded recessions. Spread above Treasuries = credit risk premium.
US Treasury Yield Curve — 2026 Reference
| Maturity | Approx. Yield | Price Sensitivity (1% rate change) |
|---|---|---|
| 3-month T-Bill | 5.2% | −0.25% |
| 1-year | 4.9% | −1.0% |
| 2-year | 4.6% | −2.0% |
| 5-year | 4.4% | −4.7% |
| 10-year | 4.5% | −8.6% |
| 30-year | 4.7% | −18.4% |
Approximate 2026 yields — check TreasuryDirect.gov for real-time data. Price sensitivity = approximate % change for a 1% parallel rate shift (duration-based estimate).