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Current yield

• Coupon payments on a security as a percentage of the security's market price. In many instances the price should be gross of accrued interest, particularly on instruments where no coupon is left to be paid until maturity.

• The annual income from an investment divided by the current market value. Since the mathematical calculation relies on the current market value rather than the investor's cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity.

• Annual income (interest or dividends) divided by the current price of the security. For stocks, this is the same as the Dividend Yield.

• For bonds or notes, the coupon rate divided by the market price of the bond.

 
 

Follow this link for all the terms related to yield.

 
 Embedded terms in definition
 Accrued interest
Bond
Coupon payments
Coupon rate
Coupon
Dividend yield
Dividend
Gross
Held
Income
Instruments
Interest
Investor
Market value
Market
Maturity
Return
Security
Will
Yield
 
 Related Terms
 

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