The current yield on these bonds is 5.08%.
current Yield = annual Coupon / current Price
Annual coupon = 50
current price = 984
Current yield = 50/984 = 0.0508 i.e. 5.08% current yield.
The current yield of a bond is calculated by using dividing the annual coupon price by the bond's contemporary marketplace price.
A bond's yield to maturity (YTM) is the annualized interest charge that discounts the bond's coupon and faces price payoffs to the marketplace charge. that is, it is the hobby charge that the bondholder receives on the bond.
Current yield. a bond's annual coupon divided via its market price. current yield= annual coupon / bond price. yield to maturity (YTM) is the discount fee that equates a bond's fee with the prevailing value of its destiny cash flows.
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