Editing Current yield (section)

{{Short description|Ratio of interest to price for a bond}}

The '''current yield''', '''interest yield''',  '''income yield''', '''flat yield''', '''market yield''', '''mark to market yield''' or '''running yield''' is a [[finance|financial]] term used in reference to [[bond (finance)|bond]]s and other [[securities|fixed-interest securities]] such as [[gilts]]. It is the ratio of the annual interest ([[Coupon (finance)|coupon]]) payment and the bond's [[price]]:

<math>
\text{Current yield} = \frac{\text{Annual interest payment} }{\text{Current price} }.
</math> <ref>{{cite book |last1=Martinelli, Lionel, Priaulet, Phillippe and Priaulet, Stephane |title=Fixed Income Securities: Valuation, Risk Management and Portfolio Strategies |date=2003 |publisher=John Wiley & Sons |location=Chichester, England |isbn=0-470-85277-1 |page=49}}</ref><ref>{{cite book |last1=Thau |first1=Annette |title=The Bond Book |date=2001 |publisher=McGraw-Hill |location=New York |isbn=0-07-135862-5 |pages=102–104 |edition=Revised}}</ref>