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 face of nature and civilization in this our country is to a certain point a very sufficient literary field. But it will yield its secrets only to a really grasping imagination.... To write well and worthily of American things one need even more than elsewhere to be a master.”
—Henry James (1843–1916)
“The field of the poor may yield much food, but it is swept away through injustice.”
—Bible: Hebrew, Proverbs 13:23.