Investing to maximize after-tax income.
Current yield is the annual return on the dollar amount paid for a bond.
Yield to maturity is the total return you receive by holding a bond until it matures. Tax-exempt yields are usually stated in terms of yield to maturity, with yield expressed at an annual rate. If you pay more than par, the yield to maturity will be lower than the coupon rate. If purchased below par, the bond will have a yield to maturity higher than the coupon rate. When the security sells below par value, it is said to be selling at a discount.