Investors in fixed income securities have two primary concerns—the price of a bond and the yield it generates. Measured as a percentage, the current yield is equal to the bond’s annual coupon divided by its current price. In practice, it is the same as dividend yield for common stock. You can use the template to calculate the expected annual return of a bond, and to estimate the current yield when selling a bond before maturity.
This open-access Excel template is a useful tool for bankers, investment professionals, corporate finance practitioners, portfolio managers, and anyone preparing a corporate presentation.
Current Yield of Bond is among the topics included in the Fixed Income module of the CFA Level 1 Curriculum. Gain valuable insights into the subject with our Fixed Income Investments course.
You can also explore other related templates such as—Holding Period Yield, Yield to Maturity, and Effective Annual Yield.
