CFA Practice Question

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CFA Practice Question

The annual interest payment divided by the price of the bond is known as the ______.

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.

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khalifa92 divided by the flat price
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