what is the current yield 
current yield is an investment s annual income interest or dividends divided by the current price of the security this measure examines the current price of a bond rather than looking at its face value current yield represents the return an investor would expect to earn if the owner purchased the bond and held it for a year however current yield is not the actual return an investor receives if he holds a bond until maturity understanding current yieldcurrent yield is most often applied to bond investments which are securities that are issued to an investor at a par value face amount of 1 000 a bond carries a coupon amount of interest that is stated on the face of the bond certificate and bonds are traded between investors since the market price of a bond changes an investor may purchase a bond at a discount less than par value or a premium more than par value and the purchase price of a bond affects the current yield 