# Coupon rate current yield ytm, what it is:

Current Yield can be calculated by dividing the annual payment by the price.

The resulting sum, in turn, is divided by the average of the par value and the current bond price. But what if it matures in two years?

For the sake of example, let's say investors can now purchase the bond for just 95 cents on the dollar. Although it is difficult to solve for the yield using the above equation, it can be approximated by this formula:.

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