To install click the Add extension button. That's it.

The source code for the WIKI 2 extension is being checked by specialists of the Mozilla Foundation, Google, and Apple. You could also do it yourself at any point in time.

4,5
Kelly Slayton
Congratulations on this excellent venture… what a great idea!
Alexander Grigorievskiy
I use WIKI 2 every day and almost forgot how the original Wikipedia looks like.
Live Statistics
English Articles
Improved in 24 Hours
Languages
Recent
Show all languages
What we do. Every page goes through several hundred of perfecting techniques; in live mode. Quite the same Wikipedia. Just better.
.
Leo
Newton
Brights
Milds

# Current yield

The current yield, interest yield, income yield, flat yield, market yield, mark to market yield or running yield is a financial term used in reference to bonds and other fixed-interest securities such as gilts. It is the ratio of the annual interest payment and the bond's current clean price:

${\displaystyle {\text{Current yield}}={\frac {\text{Annual interest payment}}{\text{Clean price}}}.}$

The current yield only therefore refers to the yield of the bond at the current moment. It does not reflect the total return over the life of the bond. In particular, it takes no account of reinvestment risk (the uncertainty about the rate at which future cashflows can be reinvested) or the fact that bonds usually mature at par value, which can be an important component of a bond's return.

• 1/3
Views:
6 624
58 182
5 306
• Types of Yield: Current Yield & Yield to Maturity
• Investopedia Video: Bond Yields - Current Yield and YTM
• Bond Current Yield

## Relationship between yield to maturity and coupon rate

The concept of current yield is closely related to other bond concepts, including yield to maturity, and coupon yield. When a coupon-bearing bond sells at;

For zero-coupon bonds selling at a discount, the coupon yield and current yield are zero, and the YTM is positive.

## Example Calculation

To calculate the current yield of a bond with a face value of $100 and a coupon rate of 5.00% that is selling at$95.00 (clean; not including accrued interest), use:

${\displaystyle {\text{Current Yield}}={\frac {F\times r}{P}}={\frac {\100\times 5.00\%}{\95.00}}={\frac {\5.00}{\95.00}}=5.2631\%}$