Current Yield Calculation for a Bond

In the world of fixed income securities, yield measures are critical for assessing the return on an investment. One important yield measure is the current yield. The current yield is calculated as the annual coupon payment divided by the current market price of the bond. Understanding different yield measures can help investors make informed decisions regarding their bond investments.

Consider a bond with an annual coupon payment of $80 and a current market price of $1,000. What is the current yield of this bond?