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:
“Quarrel not at all. No man resolved to make the most of himself, can spare time for personal contention. Still less can he afford to take all the consequences, including the vitiating of his temper, and the loss of self-control. Yield larger things to which you can show no more than equal right; and yield lesser ones, though clearly your own. Better give your path to a dog, than be bitten by him in contesting for the right. Even killing the dog would not cure the bite.”
—Abraham Lincoln (1809–1865)
“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)
“They are not callow like the young of most birds, but more perfectly developed and precocious even than chickens. The remarkably adult yet innocent expression of their open and serene eyes is very memorable. All intelligence seems reflected in them. They suggest not merely the purity of infancy, but a wisdom clarified by experience. Such an eye was not born when the bird was, but is coeval with the sky it reflects. The woods do not yield another such a gem.”
—Henry David Thoreau (1817–1862)