current yield

The current yield refers to the rate of interested that a bond pays over the course of a year: in other words it's the annual interest rate on that bond product.

The current yield will vary greatly from bond to bond depending on its rating, and also of course depending on prevailing rate conditions. Bond rates are at the time of writing relatively low because interest rates are so low at the present time.

Related Articles

Accrual Rate
Central bank
Liquidation
Limited Liability Company
Loan Grading

More Financial Words and Vocabulary Explained