# Current Yield

- Annual income (interest or dividends) divided by the current price of the security. This measure looks at the current price of a bond instead of its face value and represents the return an investor would expect if he or she purchased the bond and held it for a year. This measure is not an accurate reflection of the actual return that an investor will receive in all cases because bond and stock prices are constantly changing due to market factors.

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