Nov 19, 2024 · Learn about the relationship between a bond’s current yield and its yield to maturity, including how the market price of a bond affects both calculations.

Apr 12, 2025 · Current yield represents the annual income an investor can expect from a bond as a percentage of its current price, while YTM accounts for all future coupon payments and the …

Aug 7, 2023 · You can compare bonds via current yield or yield to maturity. Current yield shows a bond’s present cash flow while yield to maturity predicts total returns over the life of the bond.

Jul 6, 2025 · YTM takes into account the bond's coupon rate, time to maturity, and market price, providing a more thorough view of the bond's potential return. In contrast, Current Yield focuses …

To more easily compare bond yields, several yields can be calculated, including the nominal yield, current yield, yield to maturity, and the taxable equivalent yield.

Dec 10, 2025 · When a bond's market price is above par, which is known as a premium bond, its current yield and YTM are lower than its coupon rate. Conversely, when a bond sells for less than par, which …

Jan 2, 2025 · Discover the key differences between current yield vs yield to maturity, essential for informed investment decisions and maximizing returns.

Current yield focuses on the bond’s annual income relative to its current price, while YTM estimates the total return if held to maturity, including income and capital gains/losses.

Sep 24, 2025 · Current Yield measures the annual coupon payment relative to the bond’s current market price, offering a snapshot of income return. Yield to Maturity (YTM) reflects the total expected return …

May 9, 2025 · Yield to maturity (YTM) is a more comprehensive measure of the total return an investor can expect to receive from a bond if held until maturity. YTM factors in not only the annual interest …