Bond Yield Calculator Australia
Compare coupon income with the annualised yield implied by the price you actually pay.
Must be greater than zero — yield is undefined for a free bond
Percentage of face value
Yield to maturity assumes every coupon is received and reinvested at the same yield, and the issuer repays face value at maturity. It does not assess credit or market risk.
What this estimate includes
- Calculates annual coupon income from face value and coupon rate.
- Includes purchase fees in total acquisition cost.
- Solves the yield to maturity from annual, half-yearly or quarterly coupons.
- Separates coupon income from the maturity capital gain or loss.
Frequently asked questions
What is current yield on a bond?
Current yield divides the annual coupon payment by the total acquisition cost entered. It does not include the gain or loss between the purchase price and face value.
What is yield to maturity?
Yield to maturity is the annualised return implied by the purchase cost, coupon payments and face-value repayment if the bond is held to maturity.
Why does a discount bond have a higher yield?
Buying below face value can add a capital gain at maturity, on top of coupon income. The reverse applies when buying above face value.
Does this calculator assess bond risk or tax?
No. It assumes coupons are paid and reinvested at the calculated yield and face value is repaid. It does not assess credit risk, price volatility, liquidity, inflation or tax.
Tax Accuracy & Sources
Illustrative fixed-rate bond return only. Assumes coupons are paid and reinvested at the same yield and the issuer repays face value. Excludes tax and risk assessment.