Why Isn't the Current Yield a Good Indicator of Holding

question 24

Multiple Choice

Why isn't the current yield a good indicator of holding a bond?

• A) It doesn't account for the yield to maturity.
• B) It doesn't account for capital gains or losses.
• C) It doesn't account for the coupon.
• D) It assumes that the current price equals its par value.

---

Definitions:

Major Depression

A mental disorder characterized by a persistent and severe low mood that is accompanied by low self-esteem and by a loss of interest or pleasure in normally enjoyable activities.

Women

Adult human females, often discussed in contexts involving gender-specific issues, rights, and contributions to society.

Men

Adult human males.

Obsession

A persistent and intrusive thought, idea, or desire that dominates a person's mind, often leading to compulsive behavior.