Q548
An annual interest payment divided by current price of bond is considered as
A.
current yield
AnswerB.
maturity yield
C.
return yield
D.
earning yield
Answer: Option A
Solution
Answer: Option A
Solution:
An annual interest payment divided by current price of bond is considered as current yield. Current yield is an investment's annual income (interest or dividends) divided by the current price of the security. This measure examines the current price of a bond, rather than looking at its face value.