Question

The current yield on a bond is measured by ________. the annual interest payment divided by...

The current yield on a bond is measured by ________.

the annual interest payment divided by the current price

the annual interest payment divided by the par value

the annual interest payment divided by the maturity value

the annual interest payment divided by the yield to maturity

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Answer #1

the annual interest payment divided by the current price

Current yield is measured by dividing annual coupon by price. Current yield represents the return an investor would expect if the owner purchased the bond and held it for a YEAR.

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