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)
“I believe that there is a subtle magnetism in Nature, which, if we unconsciously yield to it, will direct us aright. It is not indifferent to us which way we walk.”
—Henry David Thoreau (1817–1862)
“Your hand
skilled to yield death-blows, might break
With the slightest turn no ill will meant
my own lesser, yet still somewhat fine-wrought,
fiery-tempered, delicate, over-passionate steel.”
—Hilda Doolittle (1886–1961)