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What is current yield?

Updated: 10/17/2022
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16y ago

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A current yield is a bond's annual return based on its current price. This is different from its original price and face value.

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Lauretta Pollich

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Related questions

What is a current yield?

A current yield is a bond's annual return based on its current price. This is different from its original price and face value.


What are the different types of yields on bonds?

* yield to worst (to maturity or to call date) * current yield * coupon yield


Compute the current price of the bonds if the present yield to maturity is?

Compute the current price of the bond if percent yield to maturity is 7%


What is Dividend Yield?

The dividend yield is the ratio of the annual dividend amount to the current price of the stock. So if the dividend is $1 and the current price is $50, the yield is 2 percent ($1/$50). But when the stock changes price the current dividend changes accordingly.


If a coupon bond is selling at par does the current yield equal its yield to maturity?

Yield usually refers to yield to maturity. If a bond is trading at par it usually means the yield to maturity is equal to the coupon.


The current yield on a bond is equal to?

Annual interest divided by the current market price


How do you compute dividend yield?

Dividend Yield = Annual Dividend (usually previous 12 months)/Current or Purchase Price.


A 6-year Circular File bond pays interest of 80 annually and sells for 950 What are its coupon rate current yield and yield to maturity?

Bond Pricing. A 6 year circular file bond pays interest of $80 annually, and sells for $950. What are its coupon rate, Current yield, and yield maturity?


If the bond's price increases will it increase or decrease bond's yield?

neither once the bond is created the yield is set. the bond price is simply a reflection of the current rate and the rate, 'yield' of the bond.


Is the current yield greater than the coupon rate for a discount bond?

yes


Distinguish between current yield an yield to maturity of a fixed income security how are these yields calculated?

Current yield is equal to the annual interest payment divided by the market price. It is the actual yield an investor will receive (instead of what is stated). For example, if a bond has a stated rate of 5 percent, but is selling below par, the investor would receive more than a 5 percent return. If the bond is selling above par, the current yield is actually less than 5 percent. Yield to maturity is the total return an investor will receive if the security is held until the maturity date, which is all of the annual interest payments and the difference between the original price and the principal you will receive at maturity. This formula is much more complicated but there are websites that will do it for you. Try moneychimp.com which has a calculator for the current yield and YTM.


What is the potential radius of current nuclear weapons?

Whichever radius you are referring to depends on yield.