Current Yield
Current yield is the annual coupon payment divided by the bond's current market price, expressed as a percentage. It measures the income return a bond provides at the current price, not including any capital gains or losses from price changes or time to maturity.
Example: Example: A $1,000 face-value bond with a 6% annual coupon trades at $950. Its current yield is $60 / $950 ≈ 6.32%.
💬 Comments