Examveda
Examveda

An annual interest payment divided by current price of bond is considered as

A. current yield

B. maturity yield

C. return yield

D. earning yield

Answer: Option A

Solution(By Examveda Team)

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.

This Question Belongs to Commerce >> Financial Management

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