™A bond paying $50 annually and trading at $900 has a current yield of 5.56%; this excludes the price change toward maturity and other adjustments.
Bonds & Rates
Current yield
A bond’s annual coupon income divided by its current market price.
Plain-English context
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This income-only ratio excludes principal gain or loss, timing, calls, default and reinvestment effects.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. Investor.gov — bonds and fixed income