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:
“If the hive be disturbed by rash and stupid hands, instead of honey, it will yield us bees.”
—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)
“Yet cease your ire, you angry stars of heaven!
Wind, rain, and thunder, remember earthly man
Is but a substance that must yield to you.”
—William Shakespeare (1564–1616)