The Annual Interest Payment Divided by the Current Price of a Bond

question 20

Multiple Choice

The annual interest payment divided by the current price of a bond is called the:

• A)coupon rate.
• B)current yield.
• C)yield-to-maturity.
• D)yield-to-market.
• E)market yield.

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Definitions:

Bank Reconciliation

The process of comparing and adjusting the balance shown in an entity's bank statement, with the corresponding amount shown in the entity's own accounting records.

Outstanding Checks

Checks that have been written and recorded by an entity but not yet cleared or cashed by the recipient.

Control Environment

The control environment forms part of an organization’s internal control framework, setting the tone for discipline and structure regarding the internal controls and operational processes.

Risk Assessment

The process of identifying, analyzing, and evaluating the likelihood and impact of risks on a project or organization.