n NISM Certifications
XIII NISM Series XIII
Medium

Current yield is an unsatisfactory measure of return because __________.

Practice question from NISM Series XIII for SIF - Mock Test 9 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    It ignores the capital gain/loss at redemption

  2. B

    It ignores the premium/discount in bond price

  3. Both 1 and 2

    Correct answer

  4. D

    None of the above

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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