The current yield is the best measure of an investor's return from holding a bond.
举一反三
- The current yield goes up as the price of a bond falls.
- A zero coupon bond is currently priced to yield 5.87 percent if held tomaturity 6.9 years from now. What is the current price of this bond if theface value is $1,000?
- The return on a bond is equal to the yield to maturity when _________
- Which of the following is least accurate regarding a bank discount yield A: It ignores the opportunity to earn compound interest. B: It is based on the face value of the bond, not its purchase price. C: It reflects the nonannualized return an investor will earn over a security"s life.
- Bond ratings measure the bond's credit risk. ( )