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.
A
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Assume that sales revenues are increasing more rapidly than product costs, but that a project's cash flows have been represented as an annuity when calculating NPV. Which of the following problems may occur?
A) nominal cash flows are possibly being discounted with a real rate. B) nominal cash flows are possibly being discounted with a nominal rate. C) real cash flows are possibly being discounted with a real rate. D) real cash flows are possibly being discounted with a nominal rate.
Many of the basic protections associated with qualified employer plans can be traced to
A) the Social Security Reform Act B) the Employee Retirement Income Security Act C) Public Law 15 D) the McCarran-Ferguson Act