Current return

Current Yield

The income from dividends (for stocks) or coupons (for bonds) divided by the market price of the security, expressed as a percentage. This is sometimes used in making the decision of whether or not to buy a security, but it does not accurately reflect its return, as the market price changes constantly. It is also called the current return or the running yield.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Current return.

Current return, also called current yield, is the amount of interest you earn on a bond in any given year, expressed as a percent of the current market price.

The current return will, in most cases, not be the same as the coupon rate, or the interest rate the bond pays calculated as a percentage of its par value.

For example, if the par, or face value, of a bond is $1,000 and the coupon rate is 5%, then the interest payments, or annual income, from the bond is $50 per year. If, however, the bond is trading at $900, then that $50 annual income is actually a current return of 5.6%.

The current return does not take capital gains or losses into account, so it is not a reflection of the total return on your bond investment.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
A non-diversified, closed-end management investment company, MFD seeks a high level of current return consisting of dividends, interest and other similar income while attempting to preserve capital.
Draper, a nonprofit that traces its origins to the MIT program that developed the Apollo Guidance Computer, says it will play a big role in NASA's current return to the moon.
Impedance calculations (especially when performed using web-based design tools) usually assume a rectangular cross-section of the finished circuit trace with a perfect current return path.
If approved by the CPUC, PG&E's proposal would update the current return on equity from 10.25% to 16%.
The hat-trick of cup losses in late October into mid-November created a six-game winless run across three competitions that would grow to become a run of one win in 13 games, to the current return of three victories in 22 games stretching back to the start of October.
For imported coal the current return in US dollar (USD) is 17 percent while it is 20.30 percent in Pakistani Rupee(PKR).
The analysis also highlights opportunities to enhance current return practices--through increased data and information sharing, by eliminating redundant operations and by increasing the use of electronic data interchange (EDI) to improve the reconciliation process.
Equality plans to implement an innovative fee structure that reflects the current return environment and more closely aligns General Partner and Limited Partner interests.
Perhaps more important, we found that firms with a higher share of green revenues have higher stock-market valuations (price-to-earnings ratios), even if their current return on equity is lower than that of their non-green peers.
Darlow's remit had been to rebuild the Hawks squad after a summer that had seen over half of the double-winning side leave, but the current return of five wins from 11 starts was not seen as good enough and defenceman Steven Duncombe will take over as Player/Coach for the remainder of the season.
The ratings could be downgraded if Delta was to de-emphasize the current return on invested capital strategy, if it sustained unrestricted cash below $2.5 billion or free liquidity (cash plus revolver availability with no required representation of no material adverse changes upon drawings) below $4.5 billion or used debt to repurchase shares.