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8 ½% Bond
A bond that pays an annual interest rate of 8.5%, where the interest payment is made to bondholders as compensation for their investment.
Current Yield
The annual income (interest or dividends) divided by the current price of the security, expressed as a percentage.
8% Bond
A bond that pays an annual interest rate of 8% on its face value, typically issued by corporations or governments as a form of debt financing.
Yield To Maturity
The total return anticipated on a bond if the bond is held until it matures, taking into account its current market price, par value, coupon interest rate, and time to maturity.
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