Finance
Find the current yield of a bond
=B1/B2How it works in Excel
- B1 is the yearly coupon in dollars.
- B2 is the current price.
- Format the cell as a percentage.
- This ignores any gain or loss at maturity. Yield to maturity includes it.
The idea in general
It shows what the coupon pays you compared to what the bond costs today.
What I assumed
- The yearly coupon is in B1 and the price is in B2.
Check the result on your own data before relying on it.