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:
“You win the victory when you yield to friends.”
—Sophocles (497–406/5 B.C.)
“The besetting sin of able men is impatience of contradiction and of criticism. Even those who do their best to resist the temptation, yield to it almost unconsciously and become the tools of toadies and flatterers. “Authorities,” “disciples,” and “schools” are the curse of science and do more to interfere with the work of the scientific spirit than all its enemies.”
—Thomas Henry Huxley (1825–95)
“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)