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current yield
noun
the ratio of the annual interest or dividend to the actual market price of a bond or stock.
Example Sentences
Strike has an 8% dividend rate and trades at a steep discount to face value at 75 cents on the dollar, for a current yield of 11%.
A 50 basis point rise in the 10-year yield from current levels, for example, equates to around a price fall of around 4%, which is more than covered by the current yield of 4.75%.
The YTM is much higher than the current yield because the YTM takes into account the entire yield of the bond.
The measure compares the current implied forward rate on Treasury bills 18 months from now with the current yield on a three-month Treasury bill.
Research from the Fed has argued that the "near-term forward spread" comparing the forward rate on Treasury bills 18 months from now with the current yield on a three-month Treasury bill was the most reliable bond market signal of an imminent economic contraction.
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