Examlex
Which of the following statements is correct?
Current Yield
The annual income (interest or dividends) divided by the current price of the security, often used in context with bonds.
Coupon Rate
The interest rate paid yearly on a bond, represented as a percentage of its par value.
Zero Coupon
A bond or debt security that does not pay interest (a coupon) but is traded at a deep discount, providing profit at maturity when the bond is redeemed for its full face value.
Yield
The income return on an investment, such as the interest or dividends received, expressed as an annual percentage of the investment cost.
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