Yield measure
#fixed #income

## 2.2. Yield Measures

There are several yield measures commonly used by market participants. The current yield or running yield is equal to the bond’s annual coupon divided by the bond’s price, expressed as a percentage. For example, if a bond has a coupon rate of 6%, a par value of $1,000, and a price of$1,010, the current yield is 5.94% ($60 ÷$1,010). The current yield is a measure of income that is analogous to the dividend yield for a common share.

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