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The yield to maturity is the total return than an investor would earn if he or she holds the bond until maturity Suppose an investor buys a 10year bond with a 6% coupon rate at $900 In this case, the total return for the investor would include a $60 coupon each for ten years, the par value of $1,000, and a capital gain of $100Whereas, the current yield is the annual coupon income divided by the current price of the bondCurrent Yield = Annual Coupon Payment / Current Market Price of Bond * 100% Relevance and Use of Current Yield of Bond Formula From the perspective of a bond investor, it is important to understand the concept of current yield because it helps in the assessment of the expected rate of return from a bond currently Yield To Maturity Formula Harbourfront Technologies What is difference between current yield and yield to maturity