Current Yield Calculator

An obligation, simply defined, is a type of investment that is very similar to an IOU. This is a loan in the form of a guarantee of two basic elements, the nominal value (in principle), and the coupons (interest rates). The bond is a contract between the issuer and the holder to pay certain sums of money in the future. The issuer of the bond agrees to pay the principle and interest holder under the terms and conditions for inclusion in the link. Many cities and bonds to finance the country issuing new roads and other projects of this type.

The definition of bond yield is the rate of return on the bond, which takes into account the amount of interest paid, the redemption value at maturity of the obligation and the original purchase price of the bond. Yield on the return on capital that you invest in the link. You will hear the long-term performance in many regards investments in bonds. There are many types of returns you should be aware of below.

* Current Yield
The current yield calculates the percentage of the statement that the annual coupon payment gives the investor. It calculates the percentage of real coupon payment in dollars is the price an investor pays for the link. This can be easily obtained by dividing the nominal yield on the bond by its market price.

Coupon Yield *
The annual interest rate established when the bond is issued.

* Yield to maturity
Is the return the investor will receive their entire investment in the link.

* Yield to call
The yield to call (YTC) is the interest rate that bondholders will receive if they held the bond until the date of the call. The call date is the date on which a bond can be redeemed by the issuer before maturity of the bond. In this case, the deposit will be repaid at par or higher value.

* Yield to worst
This is the lowest calculated that the holder will receive at maturity or call date. It is generally calculated by conservative investors to determine the worst case.

Be sure to remember that once a bond is issued, the coupon interest rate is fixed. Therefore, if market interest rates rise, the price of the bond will fall so that bond yields will be consistent with current market rates.