4-11 Bond yields CUrrent Yield- Annual coupon payments divided by bond price YIeld To Maturity -Interest rate for which the present value of the bond's payments equal the he price Irwin/McGraw-Hill CThe McGraw-Hill Commpanies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 4- 11 Irwin/McGraw-Hill Bond Yields Current Yield - Annual coupon payments divided by bond price. Yield To Maturity - Interest rate for which the present value of the bond’s payments equal the price