Which of the Following Are True for the Current Yield

question 47

Multiple Choice

Which of the following are true for the current yield?

• A) The current yield is defined as the yearly coupon payment divided by the price of the security.
• B) The formula for the current yield is identical to the formula describing the yield to maturity for a discount bond.
• C) The current yield is always a poor approximation for the yield to maturity.
• D) All of the above are true.
• E) Only A and B of the above are true.

---

Definitions:

Retailer

A business entity that sells goods or services directly to consumers, acting as an intermediary between wholesalers and the purchasing public.