Current Yield Law and Legal Definition

Current yield is the annual interest paid on a security, especially a bond, divided by the security’s current market price. It is the annual rate of return received from an investment, based on the income received during a year compared with the investment's current market price. For example, a bond selling at $1000 and paying an annual interest of $100 provides a current yield of $100/$1000 , or 10%.

Current yield is also called as rate of return or running yield.