The Current Yield for a Bond Is Determined by Dividing

question 70

True/False

The current yield for a bond is determined by dividing dollar amount of annual interest by the current market value.

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Definitions:

Cash Dividend

A payment made by a company out of its profits to its shareholders in the form of cash.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares of stock rather than cash.

Common Stock Dividend Distributable

A liability recorded on a company's balance sheet for dividends declared but not yet paid to shareholders.

Board of Directors

The Board of Directors is a group of individuals elected by the shareholders of a company to oversee the management and make major decisions.