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Bond Yields

The coupon payment of a bond may be fixed, but the yield varies with market conditions. The yield can be calculated in three different ways: Yield to Maturity, Yield to Call, and Current Yield.

Yield to Maturity (YTM)

The Yield to Maturity, is the total return anticipated on a bond held to maturity

Yield to Call (YTC)

The Yield to Call, is the return anticipated on a bond called before maturity

Current Yield

The Current Yield, is the bonds annual interest payment divided by the current price