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:
“While the white man keeps the impetus of his own proud, onward march, the dark races will yield and serve, perforce. But let the white man once have a misgiving about his own leadership, and the dark races will at once attack him, to pull him down into the old gulfs.”
—D.H. (David Herbert)
“The face of nature and civilization in this our country is to a certain point a very sufficient literary field. But it will yield its secrets only to a really grasping imagination.... To write well and worthily of American things one need even more than elsewhere to be a master.”
—Henry James (1843–1916)
“A book should contain pure discoveries, glimpses of terra firma, though by shipwrecked mariners, and not the art of navigation by those who have never been out of sight of land. They must not yield wheat and potatoes, but must themselves be the unconstrained and natural harvest of their author’s lives.”
—Henry David Thoreau (1817–1862)