Question

The current yield on a bond is equal to Multiple Choice annual interest payment divided by...

The current yield on a bond is equal to

Multiple Choice

  • annual interest payment divided by the current market price.

  • the yield to maturity.

  • annual interest divided by the par value.

  • the internal rate of return.

  • None of the options are correct.

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Answer #1

Answer: annual interest payment divided by the current market price. coupon paid/price

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