Answer:
The current yield is defined as the annual interest on a bond divided by the: market price
When investors acquire bonds, they do so essentially to produce income. The demanded annual rate of return is summoned as the current yield, and it is a gathering of the prevailing price and the amount of interest the bond meets.
current yield is a crucial measure because it determines the rate of return on your expense for as longspun as you hold the bond. The current yield is equivalent to the annual interest gained divided by the current price of the bond.
The current yield is defined as the annual interest on a bond divided by the
The current yield is the yardstick which is used by investors to calculate the value of their bonds based on the interest rates which has been accrued over a period of one year.
With this in mind, when making mathematical calculations of the current yield, then it would be Annual Bond/Market price of the bond which shows the profitability of the bond after a period of one year.
Therefore, the correct answer is option C
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