The percentage return on a bond or CD based on its current market
price and its original interest rate. A bond or CD for which you paid $1,000 and that pays you $60
annually would have a current yield of 6%. A bond or CD for which you paid $1,000 and that pays
you $30 semi-annually with the $30 annual payments accruing interest so that it pays $31.80 in the
second annual payment also has a current yield of 6%, but it has an APY of 6.18%.