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:
“Truth, Sir, is a cow which will yield such people no more milk, and so they are gone to milk the bull.”
—Samuel Johnson (1709–1784)
“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)
“Thus did he yield me in the shady night
A wondrous and instructive light,
Which taught me that under our feet there is,
As o’er our heads, a place of bliss.”
—Thomas Traherne (1636–1674)