What Is Current Income?

Current income is the annual interest rate income of the equilibrium distribution of bonds purchased by investors at the market price, based on a combination of interest and principal before the repayment period expires. Although current yields are widely used, they show the relationship between bond interest income and bond market prices, without taking into account the principal paid when the bond matures. Therefore, when the investor calculates this cash flow, the current yield or maturity yield method is used to calculate the actual return that the bond may bring. The ratio of bond interest to bond market prices is the current yield. In determining the rate of return on invested funds, current returns are generally used. ^[1]