Which of the following would not be associated with a zero-coupon bond?
A) Yield to maturity
B) Discount bond
C) Current yield
D) Interest-rate risk

Question

Quizplus · Accepted Answer

Current yield is the annual interest payment divided by the current market price of the bond. Since zero-coupon bonds do not have periodic interest payments, they do not have a current yield. The other options are all associated with zero-coupon bonds. Yield to maturity refers to the total return an investor would receive from holding the bond until maturity. Discount bond means the bond is priced below its face value. Interest-rate risk refers to the risk that changes in market interest rates will affect the bond's value.

Which of the Following Would Not Be Associated with a Zero-Coupon