- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 44. Introduction to Fixed-Income Valuation
- Subject 5. Yield Measures for Fixed-Rate Bonds
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 |