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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.

BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.