A Bond's Current Yield Is Calculated As

question 138

Multiple Choice

A bond's current yield is calculated as:

• A) the annual interest payment divided by the bond's current market yield.
• B) the annual interest payment divided by the bond's face value.
• C) the annual interest payment divided by the bond's current price.
• D) the par value divided by the bond's current price.

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Definitions:

Corporate Penalty Taxation

The imposition of taxes on corporations for violating laws or regulations, distinct from regular taxation on profits.

Closely Held Corporation

A business corporation that is owned by a small number of shareholders; its shares are not publicly traded.

Limited Liability

is a legal structure where the owners' personal liability is restricted to the amount they invested in the business, protecting personal assets from business debts and obligations.

Comingled

Mixed together without distinction; often refers to the mixing of funds belonging to one party with those of another, especially in a fiduciary relationship.