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:
“Your hand
skilled to yield death-blows, might break
With the slightest turn no ill will meant
my own lesser, yet still somewhat fine-wrought,
fiery-tempered, delicate, over-passionate steel.”
—Hilda Doolittle (1886–1961)
“You oughtn’t to yield to temptation.
Well, somebody must, or the thing becomes absurd.”
—Anthony Hope (1863–1933)
“As yields no mercy to desert,
Nor grace to those that crave it.
Sweet sun, when thou lookest on,
Pray her regard my moan;
Sweet birds, when you sing to her,
To yield some pity, woo her;”
—Thomas Lodge (1558?–1625)