The annual return you earn from owning a bond, expressed as a percentage. It takes into account the coupon payments you receive and any changes in the bond's price. Yield changes as bond prices go up or down in the market.
Suppose you buy a bond for $950 that pays $50 per year in coupon payments. Your current yield is about 5.3% ($50 divided by $950). If the bond's market price rises to $1,050, your current yield drops to about 4.8% ($50 divided by $1,050).
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