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:

Foreign Currency

Monetary units issued by countries other than the home country of a business or investor, involved in international transactions.

Right to Sell

The legal permission or authority given to a person or entity to sell a product or service.

Currency Swap

A financial derivative product that allows two parties to exchange principal and interest in different currencies, used to hedge currency risk or obtain financing in foreign currency.

Forward Contract Payable

A financial instrument obligating the buyer to purchase an asset or the seller to sell an asset at a predetermined future date and price.