Final answer:
The correct statement about the current yield is that it is of great interest to conservative bond investors seeking current income, as it measures the income a bond generates relative to its market price.
Step-by-step explanation:
The statement that is correct concerning the current yield is that it is of great interest to conservative bond investors seeking current income. The current yield can be determined by dividing the bond's annual interest payments by its market price. This metric is important for investors who are interested in the income a bond generates, rather than capital gains from fluctuations in market price.
It does not show the rate of return an investor will receive by holding a bond to maturity; that would be the yield to maturity. The current yield also does not include any capital gains or losses that would be realized if the bond is sold before maturity. Thus, it is not typically of great interest to aggressive bond investors seeking capital gains. Additionally, the current yield is not determined by dividing the interest income by the par value of the bond; that would be the coupon rate.