Bond yield calculator
A bond trading below par yields more than its coupon, and one trading above par yields less. That gives the ranking the SIE tests: at a discount, yield to call sits above yield to maturity, above current yield, above nominal yield, and a premium bond reverses the order. At par all three converge on the coupon rate.
- Nominal (coupon) yield
- 5.000%
- Current yield
- 5.263%
- Yield to maturity
- 5.662%
- Annual coupon income
- 50.00
- Trading at
- a discount
Trading at a discount, so yield to call (if callable) is highest, then yield to maturity, then current yield, then nominal yield.
Move the price down and every yield moves up. That inverse relationship, and the ranking above, is what the exam asks about far more often than an arithmetic answer.
Educational only. This prices a hypothetical bond from the numbers you enter and is not a quote, a recommendation or investment advice. Openverse is not a broker-dealer or an investment adviser.
How this works
Nominal yield is the coupon rate, fixed at issue. Current yield is the annual coupon divided by the current price. Yield to maturity is the discount rate that makes the present value of the remaining coupons and the redemption at par equal the price; this calculator solves that equation by bisection with semiannual compounding rather than using the approximation formula taught in some prep materials, so the figure it prints is the actual solution. Yield to call is the same calculation run to the call date and the call price. The relationships, not the arithmetic, are what the SIE content outline asks about: it lists yield alongside coupon, par and the relationship between price and interest rate in the knowledge block for debt instruments.
Worked examples
A 5 percent bond quoted at 950 against a 1,000 par has a nominal yield of 5 percent and a current yield of about 5.26 percent, because 50 divided by 950 is more than 50 divided by 1,000. Yield to maturity is higher again, because the holder also collects the 50-point gain at redemption. Move the price to 1,050 and the whole ordering inverts: nominal above current above yield to maturity, because the holder now absorbs a 50-point loss to par.
Study the topic
- Understanding Products and Their Risks (44% of the SIE) · practice questions
- Understanding Trading, Customer Accounts and Prohibited Activities (31% of the SIE) · practice questions
19 original questions, weighted like the real blueprint. No signup. Results in minutes.
Primary references
- Securities Industry Essentials (SIE) Examination Content Outline — Financial Industry Regulatory Authority (FINRA) · primary · retrieved 2026-09-22, verified 2026-09-22