How to Calculate Bond Current Yield. When looking at bond current yield, the only two metrics that matter are the bond’s current price and its coupon rate. Again, this is because current yield only ...

The formula for calculating current yield is: Current Yield = Annual Coupon Payment / Bond's Market Price. For example, a $1,000-face value bond having an annual coupon of $50 ...

The tax-equivalent yield formula can be a useful tool for comparing taxable and tax-free bond investments. ... The current yield of a bond is the coupon yield, divided by the current market price.

While your coupon rate is still 2.5%, you bought it at a discount, so your yield rate is 2.78% since the coupon payment is now larger when compared to the cost of the bond; $25 divided by $900 is ...

Bonds can provide passive income, some of which may be tax-free if you're investing in municipal bonds. The tax-equivalent yield formula can be a useful tool for comparing taxable and tax-free ...

Money Market Yield Formula. Money market yield is calculated using a formula that annualizes the return on short-term discount securities based on a 360-day year. ...