Canadian Securities Course (CSC) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Practice for the Canadian Securities Course (CSC) exam with our quiz. Test your knowledge with multiple-choice questions. Be prepared for the real exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What does the current yield of a bond represent?

The bond's price at issuance
The yield at maturity
The annual dollar amount of interest
The duration of the bond

The correct answer is: The annual dollar amount of interest

The current yield of a bond represents the annual dollar amount of interest that the bond will pay based on its current price. This is different from the yield at maturity, which is the total return an investor will receive if they hold the bond until it reaches maturity. The bond's price at issuance and the duration of the bond are not directly related to its current yield, as the bond's price can fluctuate and the duration is a measure of the bond's sensitivity to interest rate changes. Therefore, option C is the most accurate representation of the current yield of a bond.