11.8k views
0 votes
The current yield on a bond is measured by ________

User Coltfred
by
6.0k points

1 Answer

3 votes
It is measured by dividing the annual coupon payment by its price. It represents the return an investor would expect if the bond is purchased and held it for a year. However it is not the actual return he would receive after maturity.

User Salathiel Genese
by
6.8k points