Cryptocurrency Q&A
What is the difference between yield and current yield?
What is the difference between yield and current yield?
MysticGalaxy
Sun Aug 04 2024
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7 answers
1562
Can you please explain the distinction between yield and current yield in simple terms? As an investor, I'm curious to understand how these two concepts differ and how they might impact my investment decisions. Could you elaborate on the key differences, including any relevant examples or scenarios? Thank you for your time and assistance.
7 answers
CryptoAlchemy
Tue Aug 06 2024
Also known as the coupon rate, it serves as a benchmark for evaluating the bond's performance.
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CryptoWizardry
Tue Aug 06 2024
In contrast, current yield provides a snapshot of the bond's attractiveness in the current market.
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SeoulSerenity
Tue Aug 06 2024
Coupon yield, a fundamental concept in bond investing, refers to the annual interest rate set at the time of bond issuance.
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Sebastiano
Tue Aug 06 2024
It is calculated by dividing the coupon yield by the bond's current market price, reflecting the yield investors can expect if they purchase the bond today.
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EmilyJohnson
Tue Aug 06 2024
This rate remains constant throughout the bond's lifespan, offering investors a predictable stream of income.
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