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imported>Doug Williamson |
imported>Doug Williamson |
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| Current yield is the annual rate of return in the form of dividend or interest payment on an investment.
| | The risk of loss as a result of movements in the yield curve, such as a movement in the general level of interest rates. |
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| It is equal to the coupon (or dividend) divided by the market price, expressed as a percentage.
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| It ignores any capital gains or losses.
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| The terms ''dividend yield'' and ''interest yield'' mean the same as current yield in this context.
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| <span style="color:#4B0082">'''''Current yield example'''''</span>
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| Annual income from an investment is 3.
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| The current market price is 50.
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| Current yield = annual income / market price
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| = 3 / 50
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| = '''6%'''
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| The current yield is also known as the ''running yield'', ''flat yield'' or ''income yield''.
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| == See also == | | == See also == |
| * [[Bond]]
| | * [[Yield curve]] |
| * [[Capital gain]]
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| * [[Coupon]]
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| * [[Coupon rate]]
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| * [[Current]]
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| * [[Dividend]]
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| * [[Dividend yield]]
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| * [[Interest]]
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| * [[Interest yield]]
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| * [[Market value]]
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| * [[Yield]] | |
| * [[Yield to maturity]]
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| [[Category:The_business_context]]
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| [[Category:Corporate_finance]]
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| [[Category:Investment]]
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| [[Category:Long_term_funding]]
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| [[Category:Financial_products_and_markets]]
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Revision as of 11:00, 22 June 2016
The risk of loss as a result of movements in the yield curve, such as a movement in the general level of interest rates.
See also
