How to Find a Current Yield on a Bond

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The current yield on a bond is the yearly interest rate divided by the cost price of that bond. Find the current yield on a bond by calling the holder of the bond or checking the newspaper with help from a licensed financial planner in this free video on bonds and investing.

Part of the Video Series: Bond Investing
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Video Transcript

Hello, my name is Bill Rae. I'm with Alumni Financial Services and I've been in the business in the finance world for well over twenty years. And your question is: how to find a current yield of a bond. Well, first of all, what is a bond? A bond in the finance world is a debt security that an authorized issuer owes to a holder. Fancy words for someone who borrows money and agrees to pay it back in a certain time at a certain interest rate. So, what is the yield on a bond? The yield on a bond is the yearly interest rate divided by the cost price of that bond. Now, where do you find such information? Plenty of sources that are out there. One of them obviously, is to call the holder of the bond. The other is look in your daily newspapers, The Wall Street Journal. Then there also places you can find on-line. When you find 'em, get used to the numbers and the ratios and the percentages and all the fancy lingo that we use. But our advice to you here always is, seek out confident licensed advisers. Know what it is that you're get involved in. Know what's required of you, when and how you get your money back and what return is expected on your investment. My name is Bill Rae. I'm with Alumni Financial Services, and as always, we're here to help you build wealth.

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