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How Is a Bond's Current Yield Calculated? Why Is Current

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How is a bond's current yield calculated? Why is current yield a more accurate approximation of yield to maturity for a long-term bond than for a short-term bond?


Definitions:

Job Design Theory

A concept in organizational psychology that focuses on organizing work tasks to improve job satisfaction, efficiency, and productivity.

Motivate

To provide reasons, encouragement, or incentives for individuals to behave in a desired way or even pursue certain goals.

Self-actualization

A psychological concept referring to the realization or fulfilment of one's talents and potentialities, considered as a drive or need present in everyone.

Maslow

Refers to Abraham Maslow, a psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority.

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