The Current Yield for a Bond Is Determined by Dividing

question 62

Multiple Choice

The current yield for a bond is determined by dividing the annual income amount by which of the following:

• A) face value.
• B) number of periods.
• C) dollar amount of annual interest.
• D) current market value.
• E) tax rate.

---

Definitions:

Restrictive Indorsement

An endorsement on a negotiable instrument that limits the way the instrument can be used, such as by specifying a particular payee.

Fiduciary Duty

An obligation to act in the best interest of another party, for instance, the duty a trustee has towards the beneficiaries of the trust.

Indorsee

The person to whom a negotiable instrument (like a check or promissory note) is endorsed or transferred.

Indorser

A person who signs a negotiable instrument, such as a check, over to another party, transferring ownership.