Glossary
Current yield
FI1.01Also called running yield, coupon yield.
A bond's annual coupon divided by its current price.
A bond paying ₹7 a year trading at ₹93.29 has a current yield of 7.5%.
It ignores the capital gain or loss from holding to maturity, so it overstates the return on a premium bond and understates it on a discount bond.
Yield to maturity is the better measure. Current yield is the quick one.