Also referred to as "bond yield", or "dividend yield" for stocks.
For example, if a bond is priced at $95.75 and has an annual coupon of $5.10, the current yield of the bond is 5.33%. If the bond is a 10-year bond with nine years remaining and you were only planning to hold it for one year, you would receive the $5.10, but your actual return would depend on the bond's price when you sold it. If, during this period, interest rates rose and the price of your bond fell to $87.34, your actual return for the period would be -3.5% (-$3.31/$95.75) because although you gained $5.10 in dividends, your capital loss was $8.41.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Current yield — The current yield, interest yield, income yield, flat 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… … Wikipedia
current yield — The ratio of the coupon to the current market price of the debt instrument. Chicago Board of Trade glossary (1) For bonds, a measure of the simple interest annual yield for investments with coupon rates and with maturities of one year or more. To … Financial and business terms
Current yield — For bonds or notes, the coupon rate divided by the market price of the bond. The New York Times Financial Glossary * * * current yield current yield ➔ yield1 * * * A measure of the return to a bondholder, calculated as a ratio of the coupon to … Financial and business terms
current yield — noun : the rate of return given by a bond on its current price without allowance for the fact that it will be paid at par at maturity * * * the ratio of the annual interest or dividend to the actual market price of a bond or stock. Also called… … Useful english dictionary
current yield — See yield … Big dictionary of business and management
current yield — the ratio of the annual interest or dividend to the actual market price of a bond or stock. Also called current return. * * * … Universalium
current yield — /ˌkʌrənt ji:ld/ noun a dividend calculated as a percentage of the current price of a share on the stock market … Marketing dictionary in english
current yield — /ˌkʌrənt ji!ld/ noun a dividend calculated as a percentage of the current price of a share on the stock market … Dictionary of banking and finance
current yield — Fin the interest being paid on a bond divided by its current market price, expressed as a percentage … The ultimate business dictionary
Current yield — A measurement of return to a bond holder. It is calculated as the ratio of coupon to market price expressed as a percentage … International financial encyclopaedia