# current yield

current yield
The ratio of the coupon to the current market price of the debt instrument. Chicago Board of Trade glossary
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(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 calculate the current yield, the annual coupon interest income is simply divided by the amount paid to acquire the investment. It is important to note that the current yield is only accurate for investments purchased at par. The current yield calculation includes just one income cash flow - the annual coupon interest income. It ignores the profit or loss resulting from discounts and premiums.
(2) For stocks, the annual dividend income divided by the price per share. American Banker Glossary
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For bonds or notes, the coupon rate divided by the market price of the bond. Bloomberg Financial Dictionary
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A term used frequently in bond transactions. Current yield is computed by dividing the annual amount of interest by the price paid for the bond or security. If the security is purchased at a discount from the par or principal value, the current yield with be higher than the stated interest or coupon rate. Chicago Mercantile Exchange Glossary

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current yield current yield yield1

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A measure of the return to a bondholder, calculated as a ratio of the coupon to the market price. It is simply the annual coupon rate divided by the clean price of the bond.

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current yield UK US noun [C]
FINANCE, STOCK MARKET the rate of income from an investment for a year, calculated by dividing the total income by the current price of the total investment: »

The stock's current yield is 2.3%.

### 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 — 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 — 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 …   Investment dictionary

• 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 —   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

• yield — 1 / yēld/ vt: to produce as return from an expenditure or investment: furnish as profit or interest an account that yield s 6 percent vi 1: to give place or precedence (as to one having a superior right or claim) 2: to relinquish the floor of a… …   Law dictionary