yield

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Yield

Current return from an investment or expenditure as a percentage of the price of investment or expenditure.

The term yield is the proportionate rate that income from an investment bears to the total cost of the investment. For example, a ten dollar profit on a one hundred dollar investment represents a 10 percent yield. Thus, a yield for stock dividends or bond interest paid will be expressed as a percentage of the current price. A yield can also refer to the bond coupon or stock dividend rate divided by the purchase price.

There are several specific types of yields. On bonds, a current yield is the annual interest paid divided by the current market price of the bond. As interest rates fall, the market price of the bond rises; as they rise, bond prices fall. The current yield reflects the actual rate of return on a bond. For example, a 9.5 percent bond with a face value of $1,000 yields $95 per year. If this bond is purchased in the secondary bond market for $1,100, the interest will still be $95 a year, but the current yield will be reduced to 8.6 percent because the new owner paid more for the bond.

A nominal yield is the annual income received from a fixed-income security divided by the face value of the security. It is stated as a percentage figure. For example, if a security with a face value of $5,000 generated $500 in income, the nominal yield would be 10 percent.

On bonds, a yield to maturity is a complex calculation that reflects the overall rate of return an investor would receive from a bond if the bond is held to maturity and the interest payments are reinvested at the same rate. It takes into account the purchase price, the coupon yield, the time to maturity, and the time between interest payments.

A net yield is the rate of return on an investment after deducting all costs, losses, and charges for investment. A dividend yield is the current annual dividend divided by the market price per share of stock. A yield spread refers to differences in yields between various issues of Securities.

yield

(Produce a return), verb accord, accrue, afford, bear, bestow, bring, bring about, bring forth, bring in, fetch, furnish, generate, give, provide, render, return, supply

yield

(Submit), verb abandon, abdicate, accede, accept, acquiesce, admit, agree to, allow, assent, back down, be submissive, bend, bow, capitulate, cede, comply, concede, concedere, consent, dedere, forgo, give in, give up, grant, leave, let go, make way, obey, pay homage to, permit, quit, relent, relinquish, renounce, resign, sacrifice, succumb, suffer defeat, surrender, waive
See also: abandon, abide, accede, accommodate, accrue, acknowledge, agree, allow, arise, bestow, cede, concede, concur, condescend, condone, confer, confess, conform, consent, defer, deign, discontinue, endure, engender, forfeit, forgo, forswear, fund, furnish, germinate, give, grant, hear, let, lose, manufacture, obey, outcome, outgrowth, output, permit, proceeds, produce, product, profit, quit, redound, relax, release, relent, relinquish, resign, result, revenue, succumb, supply, verify, vouchsafe, waive
References in periodicals archive ?
EIGHT-year-old Phillip Yielder has become the first fourth generation player for Ryton after joining the club's mini-section.
This high yielder still enjoys a significant premium over most of its counterparts; but the outlook is certainly dovish.
A poor showing here could further deflate this currency's use as a high yielder.
The RHS has awarded Connover's Colossal, Gijnlim and Backlim varieties its AGM seal of approval - all of these are good yielders.
A recent change has been the all-yearround housing of high yielders to ensure they are in prime condition to conceive.
On the foreign exchange side, currencies closed the week with a slightly weaker Dollar against the low yielders, but stronger against emerging markets high interest rate currencies.
UK and US bonds are already the "higher" yielders in this space and these figures illustrate the difference in expectation, compared with stock market performances.
As more central banks around the world ease monetary policy at the same time as the US Federal Reserve maps out a strategy to exit from monetary stimulus, the balance that has existed between global high yielders and global low yielders over the last few months is changing.
Investors in safer bonds, however, will have another fidgety week in the absence of any significant bad news, while those in the higher yielders will be the ones to relax.
Analysts at investment house Bank of America Merrill Lynch recently upgraded the stock citing that the shares are one of highest yielders in the FTSE 100 Index.