The Current Yield Tends to Understate a Bond's Total Return

question 68

Multiple Choice

The current yield tends to understate a bond's total return when the bond sells for a discount because:

• A) increases in interest rates will increase the current yield.
• B) the bond's price will increase each year.
• C) current yields show only nominal returns.
• D) the bond may have a higher face value.

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Definitions:

Organizational Performance

The measurement of how effective and efficient an organization is in achieving its goals and objectives.

Charismatic Leadership

A leadership style characterized by an individual's ability to inspire, motivate, and foster enthusiasm among followers through personal charm and persuasive communication.

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