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:
“Like most vigorous-minded men, seeing that there was no stopping-place between dogma and negation, he preferred to accept dogma. Of all weaknesses he most disliked timed and half-hearted faith. He would rather have jumped at once to Strong’s pure denial, than yield an inch to the argument that a mystery was to be paltered with because it could not be explained.”
—Henry Brooks Adams (1838–1918)
“The important question is not, what will yield to man a few scattered pleasures, but what will render his life happy on the whole amount.”
—Joseph Addison (1672–1719)
“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)