Effective Annual Yield Calculator (Bond)
FinanceCalculate a bonds effective annual yield from its coupon payments, converting a periodic coupon rate into a true annual compounding yield.
Effective Annual Yield (EAY)
The true annual yield once coupon compounding is factored in
Coupon Rate
5.000
The stated annual coupon rate as a percentage of face value
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Odeh Ahwal0people find this calculator helpful
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Frequently Asked Questions
Why is EAY higher than the coupon rate?
Reinvesting coupon payments more than once a year compounds your return, the same way compounding boosts a savings rate above its nominal figure.
Does EAY account for changes in the bonds market price?
No, EAY only reflects the coupon payments relative to face value. For a yield that accounts for price paid, use a yield-to-maturity calculation instead.
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