current yield

current yield definition - finance
The coupon payment on a fixed-income security, such as a bond or note, that is a percentage of the securityÂ’s market price. This value should include accrued interest. Current yield is to bonds what a dividend yield is to a stock. To calculate current yield, divide the annual coupon payment of the bond by the bondÂ’s current market price. The result is the amount of interest that the investor actually earns.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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