Current yield (also known as interest yield, income yield, flat yield, market yield, mark to market yield, or running yield) expresses the bond's yield based on its current market price and is calculated by the following formula:
$$Current\; yield = \frac{F \times r}{P}$$
F— face value;
r— annual interest rate;
P— market value (clean price).
Current Yield FAQ
What is current yield?
Current yield is a bond yield measure based on the bond's current market price.
How do you calculate current yield?
Divide the annual coupon payment by the bond's market price.
