Coupon Rates and Current Yield
If you're considering investing in a bond, one of the factors you need to understand is its yield. But it's important to know exactly what type of yield you're looking at.
What exactly is "yield?" The answer depends on how the term is used. In the broadest sense, an investment's yield is the return you get on the money you've invested. However, there are many different ways to calculate yield, particularly with bonds. Considering yield can be a good way to compare investments, as long as you know what yields you're comparing and why.