- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 7. Yield and Yield Spread Measures for Fixed-Rate Bonds
- Subject 2. Other Yield Measures, Conventions, and Accounting for Embedded Options
CFA Practice Question
The annual interest payment divided by the price of the bond is known as the ______.
B. Yield to call
C. Internal rate of return
D. Interest yield
E. Current yield
A. Yield to maturity
B. Yield to call
C. Internal rate of return
D. Interest yield
E. Current yield
Correct Answer: E
The current yield refers to the annual dollar amount of interest paid on a bond divided by the flat price.
User Contributed Comments 1
| User | Comment |
|---|---|
| khalifa92 | divided by the flat price |