Current yield= annual coupon / bond price. yield to maturity (YTM) the discount rate that equates a bond’s price with the present value of its future cash flows. Also called promised yield or just yield.Click to see full answer. Also question is, what is a bond’s current yield?Current yield is an investment’s annual income (interest or dividends) divided by the current price of the security. This measure examines the current price of a bond, rather than looking at its face value.Additionally, what is a discount bond quizlet? 8) A discount bond. A) pays the bondholder a fixed amount every period and the face value at maturity. B) pays the bondholder the face value at maturity. C) pays all interest and the face value at maturity. Similarly, you may ask, how do I calculate current yield? Calculating Current Yield The current yield is equal to the annual interest earned divided by the current price of the bond. Suppose a bond has a current price of $4,000 and a coupon of $300. Divide $300 by $4,000, which equals 0.075. Multiply 0.075 by 100 to state the current yield as 7.5 percent.What is a premium bond quizlet?discount rate that equates a bond’s price with the present value of the bond’s future cash flows. 4. A premium bond is defined as a bond that: B. has a face value that exceeds its market value. C. is callable at a price which exceeds the face value.