Financial Dictionary
Atlantic Financial
Atlantic Financial
Investment
Word
The Current Yield is the ratio of the coupon rate on a
bond to the dollar purchase price expressed as a percentage.
For example, if you paid par or 100 cents on the dollar for your bond and the
coupon rate is 6%, the current yield is 6%. However, if
you paid 97 for your 6% discount bond the
current yield is 6.186% (.06 divided by 97). If
you paid 102 for a 6% bond the current yield is 5.88% (.06 divided by 102).
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Current Yield
