Current Yield of a Bond

Face Amount    
Interest Rate    
Price    


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The current yield of a bond represents the prevailing (current) interest rate that a bond is paying based on its current price, not the face value of the bond. For example, if a $1000 bond that pays a 7% annual interest payment is currently selling for $950 then the interest rate is no longer 7%. The current yield in this example is 7.36%.

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