Current Yield

Definition

• The current yield is a financial term used in reference to bonds and other fixed-interest securities. It is the ratio of the annual interest payment.

Synonyms
interest yield, running yield, income yield, flat yield

Related Terms and Acronyms

• Average Annual Yield (AAY) — Acronym,
  • The average yield per year over the life of the investment, assuming all principal and interest remain on deposit until maturity.
• Bond — Definition,
  • A certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date.
• Parking (prk) — Abbreviation,
  • A term that refers to depositing cash in a high-yield money market account until it is transferred to another account to pay bills.