Two yields, two jobs
Current yield = annual coupon cash ÷ today’s price. It ignores the gain or loss when the bond matures at face.
Yield to maturity (YTM) folds in all remaining coupons and the difference between price and face, annualised.
On platforms that list corporate bonds (including retail apps), the headline number is usually closer to YTM. Still verify whether fees, accrued interest, and compounding conventions match your calculator.
Quick example
Face ₹1,000 · coupon 10% · price ₹980 · 2 years left:
- Current yield ≈ 100 ÷ 980 ≈ 10.20%
- YTM is a bit higher because you also earn the ₹20 pull back to par (modelled across the schedule)
Try the same numbers in the Bond YTM Calculator.
When to use which
| Situation | Prefer |
|---|---|
| ”How much cash coupon do I earn on what I pay?” | Current yield |
| ”What total annualised return if I hold to maturity?” | YTM |
| ”What price makes this coupon equal 11%?” | Bond Price Calculator |