Current yield

Describes the yield on a bond based on the coupon rate and the current market price of the bond (not on its face or par value). Current yield is calculated by dividing the annual interest earned on a bond by its current market price. For example, a £1,000 bond selling for £850 and paying an 8% coupon rate (or £80 per year) has a current yield of 9.41% (the quotient of £80 divided by £850). The coupon rate in this example is 8% (80/1,000).

Capital at risk. No FSCS cover. See Risk Statement.