Current yield is an investment's annual income (interest or dividends) divided by the current price of the security. This measure examines the current price of a bond, rather than looking at its ...

Jacob Wackerhausen / Getty Images While the current yield and yield-to-maturity (YTM) formulas may be used to calculate the yield of a bond, each method has a different application—depending on ...

The exact formula is: Coupon rate = The bond's annual interest earnings / Original face value The current yield provides a more immediate evaluation of what a bond is paying, as it is calculated ...

Calculate bond yield by dividing annual interest payment by current price ... Here is the YTC formula, followed by some information about it: YTC = (Coupon Interest Payment + ((Call Price ...

The tax-equivalent yield formula can be a useful tool for ... is the annual interest rate set when the bond is issued. The current yield of a bond is the coupon yield, divided by the current ...

Yield calculation starts by dividing the coupon rate by two and the result by current bond price. Using a simple yield method can overlook gains or losses due upon bond maturity. Including ...

But you can approximate the yield to maturity with the following shortcut formula: annual interest + annually accumulated discount/ average of par value and current price x 100 For the bond in the ...

While the current yield and yield-to-maturity (YTM) formulas may be used to calculate the yield of a bond, each method has a different application—depending on an investor’s specific goals.

Common variations of a bond yield include coupon rate, current yield and yield to maturity. A bond's yield depends on many factors, most notably the time value of money and compounding for ...