Current Yield

Current yield is a bond’s annual coupon payments divided by its current market price.

Why this matters to income investors

Annual coupon divided by market price omits call, maturity, and capital-gain outcomes.

How to use current yield in your research

Read the security’s payment terms, seniority, maturity or call rights, and issuer credit condition. Compare the income at your purchase price with the amount you could lose if payments stop or the security is redeemed.

This material is general education and information, not individualized investment, tax, or legal advice.