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:
“The life of man is the true romance, which when it is valiantly conducted will yield the imagination a higher joy than any fiction.”
—Ralph Waldo Emerson (1803–1882)
“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)
“Alas, why would you heap this care on me?
I am unfit for state and majesty.
I do beseech you take it not amiss,
I cannot nor I will not yield to you.”
—William Shakespeare (1564–1616)