Current Yield
Annual coupon income divided by the bond's clean price.
Current yield is a quick income snapshot: it divides the bond's annual coupon payment by its clean price (the market quote). Think of it as the 'income return' you'd earn if the bond's price stayed flat forever. Unlike YTM, current yield ignores capital gains or losses as the bond moves toward maturity, and it doesn't account for reinvestment of coupons. It's most useful for comparing income generation across bonds quickly, much like dividend yield for stocks.
Formula