current yield

(redirected from Running Yields)

Current yield

For bonds or notes, the coupon rate divided by the market price of the bond.

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.

current yield

The annual rate of return received from an investment, based on the income received during a year compared with the investment's current market price. For example, a bond selling at $800 and paying an annual interest of $80 provides a current yield of $80/$800 , or 10%. Also called rate of return, running yield.

Current yield.

Current yield is a measure of your rate of return on an investment, expressed as a percentage. With a bond, current yield is calculated by dividing the interest you collect by the current market price.

For example, if a bond paying 5% interest, or $50, is selling for $900, the current yield is 5.6%. If the market price is $1,200, the current yield is 4.2%. And if bond is selling exactly at par, or $1,000, the current yield is 5%, the same as the coupon rate.

If you own a stock, its current yield is the annual dividend divided by its market price.

current yield

see YIELD.

current yield

see YIELD.
References in periodicals archive ?
Chief Executive Officer Reinsurance Christian Mumenthaler says: "Upwards pressure on prices for (re)insurance is likely to rise, as low interest rates continue to depress running yields and drag return-on-equity (ROE) levels down, significant reserve releases will not go on forever and solvency rules are tightening all over the world.
He says, "Upwards pressure on prices for (re)insurance is likely to rise, as low interest rates continue to depress running yields and drag return-on-equity levels down, significant reserve releases will not go on forever and solvency rules are tightening all over the world.
The early signs from the equity market showed nervousness, but property remains an attractive asset class and - with running yields of almost 6.
Taylor Wimpey did not give any guidance on interest rates for refinancing its bank debt, however the market is currently pricing the running yields on the bonds at 13 per cent.
To re-iterate, at current market prices, we fully expect running yields to be in excess of 11.