Calculate Current Yield
Annual income divided by the current price of the security. This measure looks at the current price of a bond instead of its face value.
Annual income divided by the current price of the security. This measure looks at the current price of a bond instead of its face value.
So what does this tell you? If you were to hold the bond from #SDate# until #MDate#, the coupon payments received during that time would provide you with a current yield of #Yield#. Note that current yield does not take into account any capital gains or losses that a bondholder would realize if the bond were purchased at a discount or premium.
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