A bond's coupon payment divided by the bond's current price is equal to the bond's

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The formula for current yield is (annual coupon payment / current bond price) x 100%. Since coupon payment is already given and current price can be obtained from the market, calculating the current yield is possible. Dividend yield is typically used for stocks and the price-earnings ratio pertains to the earnings per share of a stock. Maturity value is the amount that the bond will be worth when it reaches its maturity date, but it is not relevant in calculating the bond's current yield.

A Bond's Coupon Payment Divided by the Bond's Current Price