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:
“We devastate them unreligiously,
And coldly ask their pottage, not their love.
Therefore they shove us from them, yield to us
Only what to our griping toil is due;
But the sweet affluence of love and song,
The rich results of the divine consents
Of man and earth, of world beloved and lover;
The nectar and ambrosia, are withheld.”
—Ralph Waldo Emerson (1803–1882)
“Why do I yield to that suggestion
Whose horrid image doth unfix my hair
And make my seated heart knock at my ribs
Against the use of nature?”
—William Shakespeare (1564–1616)
“Whether, if you yield not to your father’s choice,
You can endure the livery of a nun,
For aye to be in shady cloister mewed,
To live a barren sister all your life,
Chanting faint hymns to the cold fruitless moon.
Thrice blessed they that master so their blood
To undergo such maiden pilgrimage.”
—William Shakespeare (1564–1616)