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:
“I would not deny you; but, by this good day, I yield upon great persuasion; and partly to save your life, for I was told you were in a consumption.”
—William Shakespeare (1564–1616)
“Of the quaking recruit, three pitched battles make a grim grenadier; and he who shrank from the muzzle of a cannon, is now ready to yield his mustache for a sponge.”
—Herman Melville (1819–1891)
“You oughtn’t to yield to temptation.
Well, somebody must, or the thing becomes absurd.”
—Anthony Hope (1863–1933)