Fixed Income

Bond Yield Calculator

Calculate a bond's current yield and Yield to Maturity (YTM) to see the real annualised return you'd earn holding it to maturity.

Current yield and Yield to Maturity (YTM) for bonds and debentures

Face Value (₹)

Annual Coupon Rate (%)

Market Price (₹)

Years to Maturity

Current Yield = Annual Coupon ÷ Market Price × 100
YTM (approx) = [Coupon + (Face−Price)/Years] ÷ [(Face+Price)/2] × 100

Enter bond details to calculate yield

Disclaimer. This calculator is provided for educational and informational purposes only. Results are estimations and do not constitute professional financial, investment, tax, or legal advice. Consult a qualified advisor before making financial decisions. Read full disclaimer →

About Bond Yield Calculator

Bond yield is the return an investor earns from holding a bond. Current yield = Annual coupon / Current market price. Yield to Maturity (YTM) is the total annualised return if held to maturity, accounting for coupon payments, face value, purchase price, and time remaining. YTM is the most comprehensive measure of bond return. For a discount bond (price below face value), YTM exceeds the coupon rate; for a premium bond, YTM is below the coupon rate.

Bond price and yield have an inverse relationship: when interest rates rise, existing bond prices fall (and vice versa). Duration measures this sensitivity: a 10-year bond with duration 7 will fall approximately 7% in price for a 1% rise in yield. RBI Retail Direct platform allows individual investors to buy G-Secs and T-Bills directly. Taxability: interest on bonds is taxable at slab rate; capital gains on listed bonds held above 12 months taxed at 10% (LTCG). Tax-free bonds (NHAI, HUDCO, REC) offer coupon income exempt from income tax but are not freely available - secondary market prices at premium. Sovereign bonds (G-Secs) carry zero default risk as they are backed by the Government of India.

Frequently Asked Questions

Current yield only measures annual coupon income relative to the current price. YTM (Yield to Maturity) is more complete — it also factors in the capital gain or loss you'll realise if you hold the bond until it matures at face value.

Bond price and yield move inversely because the coupon payment is fixed. If you pay more for the same fixed coupon, your effective annual return (yield) is lower, and vice versa.

A discount bond trades below face value (so YTM exceeds the coupon rate). A premium bond trades above face value (so YTM is below the coupon rate).

Yes — G-Secs carry zero default risk since they're backed by the Government of India. Individual investors can buy them directly via the RBI Retail Direct platform.