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Current yield = Annual coupon ÷ Current price × 100
Yield to maturity (approximate): YTM ≈ [C + (F − P)/n] ÷ [(F + P)/2]
where C = annual coupon, F = face value, P = current price, n = years to maturity.
Exact YTM requires iterative solving — the formula above gives an approximation within 0.1% for bonds near par.
Worked example: Face value 1,000, 5% coupon (50/year), current price 920, 8 years to maturity. Approximate YTM = [50 + (1000−920)/8] ÷ [(1000+920)/2] = 60/960 = 6.25%. Current yield = 50/920 × 100 = 5.43%.