Which One of the Following Will Decrease the Current Yield

question 94

Multiple Choice

Which one of the following will decrease the current yield of a bond?

• A)increase in the face value
• B)change from semiannual to annual coupon payments
• C)decrease in the call premium
• D)decrease in the coupon rate
• E)decrease in the bond price

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Definitions:

Endergonic

A chemical reaction in which the standard change in free energy is positive, and energy is absorbed from the surroundings.

Exergonic

Describes a reaction that ends with a net release of free energy.

Oxidized

A chemical process where a molecule, atom, or ion loses electrons, often leading to its reaction with oxygen.

Reduced

Often refers to the gain of electrons or decrease in oxidation state by a molecule, atom, or ion.