In finance, the current yield of a bond is the value of its annual coupon payments divided by its current market price. Because the numerator is determined ahead of time, when the price of a bond rises, its current yield drops, and vice versa. The current yield has been used in the past to estimate the yield to maturity.

Take care of the differences between current yield and nominal yield: Nominal yield is calculated as the annual dollar amount of income received from a fixed income security divided by the issue's par value (usually $1000). This yield is also called the coupon rate .

Relationship with other yield

• Premium bond - Coupon rate < Current yield < Yield to maturity
• Par bond - Coupon rate = Current yield = Yield to maturity
• Discounted bond - Coupon rate > Current yield > Yield to maturity

See Bond valuation.