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:
“Time is here and you’ll go his way.
Your lung is waiting in the death market.
Your face beside me will grow indifferent.
Darling, you will yield up your belly and be
cored like an apple.”
—Anne Sexton (1928–1974)
“Hume, and other skeptical innovators, are vain men, and will gratify themselves at any expense. Truth will not afford sufficient food to their vanity; so they have betaken themselves to errour. Truth, Sir, is a cow that will yield such people no more milk, and so they are gone to milk the bull.”
—James Boswell (1740–1795)
“If others surpass you in knowledge, in charm, in strength, in fortune, you have other causes to blame for it; but if you yield to them in stoutness of heart you have only yourself to blame.”
—Michel de Montaigne (1533–1592)