™For a $1,000 bond, even a small change connected to current yield can affect income, market value or sensitivity to rates.
Bonds & Rates
Current yield
A bond’s annual coupon income divided by its current market price.
Plain-English context
Why it matters
Fixed-income terms connect promised cash flows with interest-rate, credit and purchasing-power risk.
Assuming Current yield has one universal interpretation without checking the source, rules, timeframe or methodology.
Use current definitions. Product terms, tax treatment and market rules can change. Confirm important details with official disclosures, regulators and regulated providers.