The annual dollar interest payment of a security is equal to $60, and the security currently sells for $400. The current yield of this security is equal to
A) 7 percent.
B) 10 percent.
C) 15 percent.
D) 24 percent.

Question

Quizplus · Accepted Answer

The current yield is calculated by dividing the annual interest payment by the current price of the security. So, $60 / $400 = 0.15 or 15%.

The Annual Dollar Interest Payment of a Security Is Equal