How this calculator works
Current yield is the annual coupon divided by the price you actually paid — buy below face value and your effective yield rises above the coupon rate.
Yield to maturity also spreads the gain or loss you make at redemption across the remaining years. This calculator uses the standard approximation formula, which is close enough for comparing bonds but is not the exact internal rate of return. The chart shows cumulative cash: flat coupons each year, then the face value returned at maturity — the point where the line jumps above what you paid is your break-even.