Series 53: Current Yield

Taken from our Series 53 Online Guide

Current Yield

Current yield is a snapshot approximation that represents the return an investor might expect to receive if she purchased a bond today and held it for a year. It is calculated by this formula:

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If a bond is selling at par value, its current yield will equal its coupon rate. If the bond is selling at a discount, the current yield will be greater than its coupon rate. Bonds selling at a premium (premium

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