Current yield A bond's coupon rate divided by its current price. Current yield is a snapshot measure of the bond's value relative to other bonds. Current yield is limited in its usefulness since it does not consider reinvestment of coupon interest or when interest income is received. Discount A price less than the par value of the bond. For instance, a bond that sells for 98.50 sells at a 1.5 percent discount to the bond's par value.
Face value See par value .
Imputed interest For investors in zero-coupon bonds , imputed interest is the difference in the bond's market value as it rises to par value from its discounted value. Technically, IRR is the interest rate that equates all investment outlays with all investment cash inflows. IRR is the annualized rate of return earned on a bond during the time the bond is held as an investment. Coupon interest is assumed to be reinvested at the same rate as the bond's yield to maturity . The interest rate for bonds with risk characteristics and a term to maturity that are similar to those of the bond you are selling.