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A current yield is a bond's annual return based on its current price. This is different from its original price and face value.

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How can I calculate the current yield on a bond?

To calculate the current yield on a bond, divide the annual interest payment by the current market price of the bond, then multiply by 100 to get the percentage.


How is a current yield on a corporate bond calculated?

The current yield on a corporate bond is calculated by taking the bond's annual coupon payment and dividing it by the bond's current market price. The formula is: Current Yield = (Annual Coupon Payment / Current Market Price) × 100. This calculation provides an indication of the income generated by the bond relative to its market value, reflecting the yield an investor would receive if they purchased the bond at its current price.


What is the current 3 month CD yield?

The current 3-month CD yield is the annual percentage rate of return on a 3-month certificate of deposit.


What is the current CD yield for a 1-year certificate of deposit at your financial institution?

The current CD yield for a 1-year certificate of deposit at our financial institution is 1.5.


What is the current yield of a 6.50 percent coupon corporate bond quoted at a price of 98.65?

To calculate the current yield of a bond, you divide the annual coupon payment by the bond's current market price. For a 6.50 percent coupon bond with a face value of $1,000, the annual coupon payment is $65. Given the bond is quoted at a price of 98.65 (or $986.50), the current yield is calculated as follows: Current Yield = ($65 / $986.50) × 100, which equals approximately 6.59%.

Related Questions

What are the different types of yields on bonds?

The different types of yields on bonds include current yield, yield to maturity, yield to call, and yield to worst. Current yield is the annual interest payment divided by the bond's current price. Yield to maturity is the total return anticipated on a bond if held until it matures. Yield to call is the yield calculation if a bond is called by the issuer before it matures. Yield to worst is the lowest potential yield that can be received on the bond.


What is current yield?

A current yield is a bond's annual return based on its current price. This is different from its original price and face value.


Compute the current price of the bonds if the present yield to maturity is?

Compute the current price of the bond if percent yield to maturity is 7%


How can I calculate the current yield on a bond?

To calculate the current yield on a bond, divide the annual interest payment by the current market price of the bond, then multiply by 100 to get the percentage.


How is a current yield on a corporate bond calculated?

The current yield on a corporate bond is calculated by taking the bond's annual coupon payment and dividing it by the bond's current market price. The formula is: Current Yield = (Annual Coupon Payment / Current Market Price) × 100. This calculation provides an indication of the income generated by the bond relative to its market value, reflecting the yield an investor would receive if they purchased the bond at its current price.


What is Dividend Yield?

The dividend yield is the ratio of the annual dividend amount to the current price of the stock. So if the dividend is $1 and the current price is $50, the yield is 2 percent ($1/$50). But when the stock changes price the current dividend changes accordingly.


What is the current 3 month CD yield?

The current 3-month CD yield is the annual percentage rate of return on a 3-month certificate of deposit.


If a coupon bond is selling at par does the current yield equal its yield to maturity?

Yield usually refers to yield to maturity. If a bond is trading at par it usually means the yield to maturity is equal to the coupon.


What is the current CD yield for a 1-year certificate of deposit at your financial institution?

The current CD yield for a 1-year certificate of deposit at our financial institution is 1.5.


The current yield on a bond is equal to?

Annual interest divided by the current market price


What is the current yield of a 6.50 percent coupon corporate bond quoted at a price of 98.65?

To calculate the current yield of a bond, you divide the annual coupon payment by the bond's current market price. For a 6.50 percent coupon bond with a face value of $1,000, the annual coupon payment is $65. Given the bond is quoted at a price of 98.65 (or $986.50), the current yield is calculated as follows: Current Yield = ($65 / $986.50) × 100, which equals approximately 6.59%.


How to calculate the yield of a bond?

To calculate the yield of a bond, you need to divide the annual interest payment by the current market price of the bond. This will give you the yield as a percentage.