What is current yield and formula for current yield?
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The ratio between the annual intrest payment and the current bond price is known as current yield..
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Formula - - Annual intrest payments / Current bond price..
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For example, let's assume a particular bond is trading at par, or 100 cents on the dollar, and that it pays a coupon rate of 3%. In this case, the bond's current yield will also be 3%
.
Formula - - Annual intrest payments / Current bond price..
.
For example, let's assume a particular bond is trading at par, or 100 cents on the dollar, and that it pays a coupon rate of 3%. In this case, the bond's current yield will also be 3%
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