Yield for 10-Year Note

Discussion in 'Financial Futures' started by gtor514, Oct 18, 2011.

  1. gtor514


    If I have the price at which the 10-year treasury note is trading, can I calculate the current yield? I think what I'm interested in is referred to as the running or current yield which is easy to calculate if I have the coupon rate and face value.

    current yield = (face value * coupon rate) / price

    Where can I get the face value and coupon rate information, if that is correct.

  2. You don't need the face value in that equation.

    Also, is there a reason you are using current yield rather than yield?

  3. gtor514


    First, Rodney King thanks for the link that helps since I am also interested in yields for Bunds as well.

    Second, I am not sure about my method. What's the difference between "current yield" and just "yield"? And if I don't need face value what do I use to compute the yield of the 10 year from the price.

    My understanding is that as price of the note falls the yield rises. How do I determine that fall or rise in yield from fall or rise in price?

  4. Current yield is the yield assuming the price of your note doesn't change in 1 yr. Yield (or yield to maturity) is what your note returns every year if you held it to maturity (when getting your par back is guaranteed).

    You just need the price, coupon, and maturity. Excel's Price function will do it (remember, tsy notes are semi-annual, act/act date count convention).

    If you need more, you should consult a basic finance textbook; I think investopia has a reasonable primer on bond math too.