Yield
The yield is the rate of return received from investing in the bond. It usually refers either to
- the current yield, or running yield, which is simply the annual interest payment divided by the current market price of the bond (often the clean price), or to
- the yield to maturity or redemption yield, which is a more useful measure of the return of the bond, taking into account the current market price, and the amount and timing of all remaining coupon payments and of the repayment due on maturity. It is equivalent to the internal rate of return of a bond.
Read more about this topic: Bond (finance), Features
Famous quotes containing the word yield:
“If the hive be disturbed by rash and stupid hands, instead of honey, it will yield us bees.”
—Ralph Waldo Emerson (1803–1882)
“Like most vigorous-minded men, seeing that there was no stopping-place between dogma and negation, he preferred to accept dogma. Of all weaknesses he most disliked timed and half-hearted faith. He would rather have jumped at once to Strong’s pure denial, than yield an inch to the argument that a mystery was to be paltered with because it could not be explained.”
—Henry Brooks Adams (1838–1918)
“You oughtn’t to yield to temptation.
Well, somebody must, or the thing becomes absurd.”
—Anthony Hope (1863–1933)