A bond's yield is its coupon payment as a percentage of the current price of a bond.

Name: A bond's yield is its coupon payment as a percentage of the current price of a bond.
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A bond's yield, specifically its current yield, is calculated by dividing the bond's annual coupon payment by its current market price, which gives the return an investor would expect if the bond is purchased at its current price.

A Bond's Yield Is Its Coupon Payment as a Percentage