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:
“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)
“Set apart a tithe of all the yield of your seed that is brought in yearly from the field.”
—Bible: Hebrew, Deuteronomy 14:22.
“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)