The Current Yield of a Bond Is Defined as The

question 39

Multiple Choice

The current yield of a bond is defined as the:

• A)annual interest payment divided by the current price.
• B)coupon rate.
• C)present value divided by the face value.
• D)current price divided by the annual interest payment of a bond.
• E)yield-to-market divided by the current price.

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Definitions:

Recover Cost

entails obtaining reimbursement for funds that have been expended for a specific purpose, often through legal or contractual means.

Express Terms

Clearly stated conditions and stipulations in a contract, either orally or in writing, that outline the specific obligations of the parties involved.

Course of Performance

A sequence of conduct between parties to a contract that is relevant to determining their rights and duties under that agreement.

Usage of Trade

Established practices or methods commonly accepted and widely adopted in a particular industry or commerce.