847:
229:
109:
127:
238:
The current yield refers only to the yield of the bond at the current moment. It does not reflect the total return over the life of the bond, or the factors affecting total return, such as:
825:
76:
347:
813:
819:
884:
426:
224:{\displaystyle {\text{Current Yield}}={\frac {F\times r}{P}}={\frac {\$ 100\times 5.00\%}{\$ 95.00}}={\frac {\$ 5.00}{\$ 95.00}}=5.2631\%}
749:
744:
370:
331:
913:
739:
615:
903:
555:
877:
595:
293:
For zero-coupon bonds selling at a discount, the coupon yield and current yield are zero, and the YTM is positive.
419:
754:
122:(r) of 5.00% that is selling at $ 95.00 (clean; not including accrued interest) (P) is calculated as follows.
908:
242:
the length of time over which the bond produces cash flows for the investor (the maturity date of the bond),
918:
688:
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302:
870:
734:
698:
535:
494:
104:{\displaystyle {\text{Current yield}}={\frac {\text{Annual interest payment}}{\text{Current price}}}.}
412:
504:
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341:
787:
713:
565:
487:
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327:
262:
246:
854:
777:
648:
620:
560:
545:
64:
792:
782:
585:
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570:
499:
693:
678:
643:
630:
605:
509:
477:
446:
398:
52:
897:
797:
772:
683:
668:
610:
550:
540:
708:
653:
600:
530:
456:
280:
274:
266:
261:
The concept of current yield is closely related to other bond concepts, including
249:(the uncertainty about the rate at which future cash flows can be reinvested), and
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703:
663:
638:
514:
482:
472:
435:
119:
56:
451:
324:
Fixed Income
Securities: Valuation, Risk Management and Portfolio Strategies
286:
718:
673:
846:
322:
Martinelli, Lionel, Priaulet, Phillippe and
Priaulet, Stephane (2003).
48:
68:
60:
118:
The current yield of a bond with a face value (F) of $ 100 and a
408:
404:
365:(Revised ed.). New York: McGraw-Hill. pp. 102–104.
252:
fluctuations in the market price of a bond prior to maturity.
326:. Chichester, England: John Wiley & Sons. p. 49.
858:
257:
Relationship between yield to maturity and coupon rate
826:
Securities
Industry and Financial Markets Association
130:
79:
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629:
523:
465:
245:interest earned on reinvested coupon payments, or
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103:
878:
420:
8:
346:: CS1 maint: multiple names: authors list (
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871:
814:Commercial Mortgage Securities Association
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63:. It is the ratio of the annual interest (
273:a discount: YTM > current yield >
192:
160:
139:
131:
129:
88:
80:
78:
820:International Capital Market Association
314:
269:. When a coupon-bearing bond sells at;
339:
289:: YTM = current yield = coupon yield.
16:Ratio of interest to price for a bond
7:
843:
841:
750:Commercial mortgage-backed security
857:. You can help Knowledge (XXG) by
853:This finance-related article is a
745:Collateralized mortgage obligation
218:
203:
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163:
14:
845:
740:Collateralized debt obligation
616:Reverse convertible securities
1:
234:Shortcomings of current yield
556:Contingent convertible bond
283:> current yield > YTM
935:
840:
596:Inverse floating rate note
51:term used in reference to
442:
67:) payment and the bond's
57:fixed-interest securities
755:Mortgage-backed security
524:Types of bonds by payout
466:Types of bonds by issuer
91:Annual interest payment
689:Option-adjusted spread
591:Inflation-indexed bond
361:Thau, Annette (2001).
303:Adjusted current yield
225:
105:
914:Fixed income analysis
735:Asset-backed security
699:Weighted-average life
536:Auction rate security
226:
106:
904:Mathematical finance
728:Securitized products
128:
77:
41:mark to market yield
505:Infrastructure bond
401:at investopedia.com
581:Floating rate note
221:
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788:Exchangeable bond
714:Yield to maturity
566:Exchangeable bond
488:Subordinated debt
387:Thau op cit p. 56
263:yield to maturity
247:reinvestment risk
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778:Convertible bond
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561:Convertible bond
546:Commercial paper
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793:Extendible bond
783:Embedded option
759:
723:
625:
586:High-yield debt
576:Fixed rate bond
571:Extendible bond
519:
500:Government bond
495:Distressed debt
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100:
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25:interest yield
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773:Callable bond
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611:Puttable bond
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541:Callable bond
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399:Current Yield
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379:
374:
372:0-07-135862-5
368:
364:
363:The Bond Book
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333:0-470-85277-1
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133:Current Yield
123:
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98:
94:Current price
85:
82:Current yield
72:
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62:
58:
54:
50:
46:
45:running yield
42:
38:
34:
30:
26:
22:
21:current yield
859:expanding it
852:
837:
807:Institutions
765:Bond options
709:Yield spread
658:
601:Lottery bond
531:Accrual bond
457:Fixed income
386:
381:
362:
356:
323:
317:
292:
281:coupon yield
279:a premium:
275:coupon yield
267:coupon yield
260:
237:
124:
117:
73:
44:
40:
37:market yield
36:
32:
29:income yield
28:
24:
20:
18:
704:Yield curve
664:Dirty price
639:Clean price
515:Global bond
483:Senior debt
473:Agency bond
436:Bond market
265:(YTM), and
120:coupon rate
898:Categories
309:References
55:and other
33:flat yield
644:Convexity
452:Debenture
342:cite book
219:%
204:$
196:$
181:$
176:%
170:×
164:$
146:×
49:financial
719:Z-spread
674:I-spread
669:Duration
297:See also
59:such as
828:(SIFMA)
114:Example
822:(ICMA)
816:(CMSA)
649:Coupon
551:Consol
369:
330:
216:5.2631
65:coupon
207:95.00
184:95.00
69:price
61:gilts
53:bonds
47:is a
855:stub
447:Bond
367:ISBN
348:link
328:ISBN
199:5.00
173:5.00
19:The
287:par
167:100
43:or
27:,
900::
344:}}
340:{{
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39:,
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23:,
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879:t
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428:e
421:t
414:v
389:.
375:.
350:)
336:.
213:=
190:=
158:=
153:P
149:r
143:F
137:=
99:.
86:=
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