Series 7 practice questioneasyDebt Securities 81
A 4% corporate bond quoted at 1030 has a current yield closest to:
- A4.00%
- B5.00%
- C3.88%✓ Correct answer
- D3.00%
Explanation
Why C — 3.88%
Current yield equals annual interest divided by current market price. A 4% bond pays $40 annually per $1,000 bond, so the current yield is approximately 3.88%.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 758+ Series 7 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Investment Information & Recommendations questions
- An open-end investment company continuously offers:
- When market interest rates rise sharply, outstanding bond prices generally:
- The public offering price of a mutual fund share equals:
- Which municipal bond is most likely to expose the investor to the alternative minimum tax?
- A closed-end fund is most similar to a common stock because it:
- Which municipal bond is backed primarily by the taxing power of the issuer?
- ETF shares differ from mutual fund shares because ETFs:
- Interest on Treasury securities is: