Par Yield
The coupon rate at which a bond would trade at par — derived from the zero curve.
The par yield at tenor T is the coupon rate that makes a bond price exactly at 100 (par), given the current zero curve. Formula: c = freq × (1 − DF(T)) / Σ DF(tᵢ) where DF is the discount factor from the zero curve. Par yields complete the three curves framework (CFA L2): Zero curve (spot rates), Forward curve (implied future rates), and Par curve. The par curve is what you'd see quoted for new bond issues — it's the fair coupon rate at each maturity. If the zero curve is upward sloping, par yields are slightly below zero rates (because interim coupons are discounted at lower short rates).
Current Yield
Annual coupon income divided by the bond's clean price.
Running Yield
Annual coupon income divided by the bond's dirty price (clean price plus accrued interest).
Yield to Maturity (YTM)
The annualized return if you hold the bond to maturity, assuming all coupons are reinvested at the same rate.
Dirty Price
The total settlement price paid for a bond, including accrued interest.
Clean Price
The quoted bond price excluding accrued interest.
Accrued Interest
Interest that has accumulated since the last coupon payment, paid by the buyer to the seller.