He is a Chartered Market Technician (CMT). Current yield is an investment's annual income (interest or dividends) divided by the current price of the security. This measure examines the current ...

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.

There's another important figure that some bond traders consider: the yield rate, also known as "current yield." Unlike coupon rates, which are fixed relative to the face value of the bond ...

The current yield of a bond is the coupon yield ... If you have those details, you can then apply the tax-equivalent yield formula: Tax-equivalent yield = Tax-exempt bond yield / (1 – Marginal ...

Yield to maturity (YTM) estimates annual bond returns assuming it's held until maturity. Calculating YTM requires current price, face value, coupon rate, maturity, and periods until maturity.

The current yield of a bond is the coupon yield ... If you have those details, you can then apply the tax-equivalent yield formula: Tax-equivalent yield = Tax-exempt bond yield / (1 – Marginal ...

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