The current yield on a bond is equal to ________.

Question

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The current yield on a bond represents the annual interest payment divided by the current market price. This ratio provides an indication of the return that an investor can expect to receive by holding the bond over a one-year period, assuming that the current market price remains constant. It does not take into account the time remaining until the bond's maturity, nor the amount of interest that will be received over the life of the bond.

The Current Yield on a Bond Is Equal to ________