The Current Yield of a Bond

question 109

Multiple Choice

The current yield of a bond:

• A) is another term for the coupon rate.
• B) is another term for the yield to maturity.
• C) equals zero for a zero-coupon bond since these bonds have no coupon payments.
• D) is the difference between its future value and its present value.

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Definitions:

Sovereign States

Politically independent countries that have complete authority over their internal and external affairs, recognized by international law.

Act-of-State Doctrine

A principle in international law that holds that a nation is sovereign within its own borders and its domestic actions cannot be questioned by the courts of another nation.

Foreign Sovereign Nation

A foreign sovereign nation refers to a country that operates under its own autonomous government and is recognized as having complete authority over its territory and political affairs, separate from other nations.

Commercial Activities

Business operations or actions that are directly related to the exchange of goods, services, or anything of value between businesses or entities.