Which of the following statements would be TRUE?

I. The current yield is defined as the yearly coupon payment divided by the price of the security.

II. The current yield is always a poor approximation for the yield to maturity.

III. The current yield is identical to the yield to maturity for a discount bond.

IV. The current yield on a $6,000, 10 percent coupon bond selling for $5,000 is 12%

II and III

None of the above

I and IV

I and II