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:
“Is it not the chief disgrace in the world, not to be an unit;Mnot to be reckoned one character;Mnot to yield that peculiar fruit which each man was created to bear, but to be reckoned in the gross, in the hundred, or the thousand, of the party, the section, to which we belong; and our opinion predicted geographically, as the north, or the south?”
—Ralph Waldo Emerson (1803–1882)
“Hume, and other sceptical innovators, are vain men, and will gratify themselves at any expense. Truth will not afford sufficient food to their vanity; so they have betaken themselves to errour. Truth, sir, is a cow which will yield such people no more milk, and so they are gone to milk the bull.”
—Samuel Johnson (1709–1784)
“Do you really think, Arthur, that it is weakness that yields to temptation? I tell you that there are terrible temptations that it requires strength, strength and courage, to yield to.”
—Oscar Wilde (1854–1900)