yield


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Related to yield: Yield to maturity, Yield curve, Yield sign

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 classic literature ?
Take back thy money, my friend; here it is, and I have had no need to touch it, for the chastity of Camilla yields not to things so base as gifts or promises.
A regard for the requester would often make one readily yield to a request, without waiting for arguments to reason one into it.
Let others- the young- yield afresh to that fraud, but we know life, our life is finished
Although I did not yield to John Barleycorn while working in the laundry, a certain definite result was produced.
No,' replied the blue-eyed chief, 'I never yield to mortal man.
Peaceful it lies by my side when warriors yield in war.
Love resistless in fight, all yield at a glance of thine eye,
And I shall know that I must die, at sea most likely, cease crawling of myself to be all a-crawl with the corruption of the sea; to be fed upon, to be carrion, to yield up all the strength and movement of my muscles that it may become strength and movement in fin and scale and the guts of fishes.
Where the land with serf-labor and good management gave a yield of nine to one, on the half-crop system it yields three to one.
That the standard of culture is falling, and that with our present relations to the peasants there is no possibility of famling on a rational system to yield a profit--that's perfectly true," said he.
that perhaps they would all fire a volley again, to endeavour to make their fellows hear, and that we should all sally upon them just at the juncture when their pieces were all discharged, and they would certainly yield, and we should have them without bloodshed.
It has a constant and imperishable moral, and to the scholar it yields a classic result.