the yield of a bond or similar asset, expressed as a ratio of the annual interest payment to the clean price
current yield in Finance
(kɜrənt yild)
Word forms: (regular plural) current yields
noun
(Finance: Investment)
The current yield of a bond is the interest payment divided by the current price of the bond.
Because a security's price may rise or fall after issuance, its current yield may be higher or lower than its coupon.
The longer the bond's maturity and the closer the bond's market value is to its parvalue, the better the current yield is as a predictor of the bond's yield to maturity.
The current yield of a bond is the interest payment divided by the current price of the bond.