What is the meaning of Current yield?

Expressed as a percentage,' Current yield' is a measure of your actual rate of return on an investment. If you own a bond, current yield is calculated by dividing the coupon rate by the purchase price and multiplying by 1, 000. For example, if you paid $800 for a bond with a coupon rate of 10, the current yield is 12. 5%. If you paid $1, 200, the current yield would be 8. 33%. And if you paid par, or $1, 000, the current yield would be 10, the same as the coupon rate. If you own a stock, the current yield is the annual dividend divided by its market price. CURRENT YIELD: BONDS Coupon rate / Purchase price x 1, 000 = Bond Current Yield CURRENT YIELD: STOCKS Annual dividend / Market price x = Stock Current Yield.