BOND PRICING
Current Yield
Relates annual coupon income to the bond's current market price.
Formula
Annual coupon / Market price
Variables: Annual coupon; Market price
What it means
Relates annual coupon income to the bond's current market price.
Example
A bond paying 4 annually and trading at 95 has a current yield of about 4.21%.
How to interpret it
This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.
Related Formulas
BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.