The ________ of a bond is computed as the ratio of the annual coupon payment to the market price.

Question

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The current yield is calculated by dividing the annual coupon payment by the market price of the bond. It represents the bond's return in the current market conditions and is different from its yield to maturity, which considers the total return over the life of the bond to maturity. The nominal yield is the interest rate stated on the face of the bond, while the yield to call is the return earned if the bond is called prior to maturity.

The ________ of a Bond Is Computed as the Ratio