As a professor of finance, it is important to understand the concept of Current Yield. This term refers to the interest rate that an investor earns on the current market price of a bond. Essentially, it is the return that a buyer is receiving on their investment. It is calculated by dividing the annual interest by the bond's current market price. This metric is important for investors as it helps determine the potential returns on their bond investments. Understanding Current Yield can be a valuable tool in making informed financial decisions.
