Return on an investment expressed as a percentage. Most often used to refer to the gross redemption yield on a bond, being the return to a purchaser if the bond is held to maturity ignoring taxes and the prospect of default. Another term for interest rate. (See also nominal interest rate, real interest rate, redemption yield, running yield.)
Relationship between redemption yields and terms to maturity. (See also redemption yield, term.)
Yield curve risk
Risk of bond price volatility due to changes in the shape of the yield curve.
Difference between the redemption yield on long dated bonds and the average equity dividend yield.
Differences in yields available on different types of bond, for example, government and corporate bonds.
See redemption yield.
Year to date.
A measure of the annual return on an investment.
A chart in which the yield level is plotted on the vertical axis and the term to maturity of debt instruments of similar creditworthiness is plotted on the horizontal axis. The yield curve is positive when long-term rates are higher than short-term rates. However, when short-term rates are higher than yields on long-term investments, the yield curve is negative or inverted.
Yield to Maturity
The rate of return an investor receives if a fixed-income security is held to maturity.