Calculate bond coupon payments, current yield, yield to maturity, and after-tax income. View payment schedule and income breakdown.
A bond's coupon payment is the periodic interest payment made to bondholders based on the face value and coupon rate. Understanding coupon payments and yields is fundamental to fixed-income investing and debt analysis.
The coupon payment equals the face value multiplied by the coupon rate, divided by the payment frequency. For example, a $1,000 bond with a 5% coupon paying semi-annually generates two $25 payments per year. However, the coupon rate alone doesn't tell the full story — you need current yield and yield to maturity (YTM) to evaluate the true return.
This calculator provides all the metrics bond investors need: per-period coupon amounts, current yield based on market price, YTM accounting for capital gains or losses, after-tax yield, and a complete payment schedule. Whether you are evaluating corporate bonds, municipal bonds, treasuries, or any fixed-income security, these metrics reveal the true income potential. Check the example with realistic values before reporting.
Bond pricing and yield calculations involve multiple compounding periods and price vs. face value relationships. This calculator handles all the math — from simple coupon payments to iterative YTM calculations — so you can focus on comparing investment options and optimizing your fixed-income portfolio. Keep these notes focused on your operational context.
Coupon Payment = Face Value × Coupon Rate / Frequency. Current Yield = Annual Coupon / Market Price. YTM is solved iteratively: Price = Σ[C/(1+r)^t] + FV/(1+r)^n.
Result: Coupon: $25/period — Current yield: 5.10% — YTM: 5.22%
A $1,000 bond with a 5% coupon paid semi-annually generates $25 every 6 months ($50/year). Purchased at $980 (discount), the current yield is 5.10% (50/980). YTM of 5.22% includes the $20 capital gain at maturity spread over 10 years.
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A coupon is the periodic interest payment a bond issuer makes to the bondholder. It is calculated as the face value multiplied by the coupon rate, divided by the payment frequency. The term originates from physical bond certificates that had detachable coupons.
The coupon rate is fixed at issuance and based on face value. Current yield divides the annual coupon by the market price (which changes). YTM accounts for both coupon income and capital gain/loss over the remaining life of the bond.
YTM differs when the bond trades above or below par. If you buy at a discount, your YTM exceeds the coupon rate because you receive both coupons and a capital gain. At a premium, YTM is lower because you lose money on the price difference at maturity.
More frequent payments result in slightly higher effective yield due to reinvestment opportunities. A 5% coupon paid semi-annually has a higher effective annual yield than 5% paid annually, because you can reinvest the mid-year payment.
Accrued interest is the coupon income earned since the last payment date. When you buy a bond between payment dates, you pay the seller the accrued interest in addition to the market price. You recover this amount when the next coupon is paid.
Yes, for most bonds. Corporate bond coupons are taxed as ordinary income. Treasury bond coupons are exempt from state/local tax but subject to federal tax. Municipal bond coupons are typically exempt from federal tax and sometimes state tax.