"Current yield" is to _ as "dividend yield" is to _.

"Current yield" is to ___________ as "dividend yield" is to ___________.
1. Bonds; perpetuities
2. Annuity present value; required return
3. Bonds; stocks
4. Stocks; bonds
5. Required return; total return

Solutions

Expert Solution

- Current Yield is calculating on Bonds to determine Interest earned on Current price of Bond.

Current Yield = Annual Coupon payment/Current price

- Dividend Yield is calculating on Equity to determine Dividend earned on Current price of Equity.

Dividend Yield = Dividend/Current price

Thus, "Current yield" is to Bonds as "dividend yield" is to Stocks.

Option C

jeff jeffy answered 1 year ago

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Question

"Current yield" is to ___________ as "dividend yield" is to ___________.

Solutions

Expert Solution

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"Current yield" is to _ as "dividend yield" is to _.