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 ?
Given this interpretation, future short-term rates may be expected to decline, which tends to reduce current long-term rates and flatten the yield curve.
1272-1(b) constant yield method to allocate the debt issuance costs to each year.
Net returns to corn remain very high; corn yields are rising at a much faster rate than those for other crops; new biotech varieties and improved seed treatments make growing continuous corn more practical; and concerns about Asian rust may discourage some farmers from planting soybeans.
In many cases the emission spectrum is independent of the excitation wavelength and can be written as a product of a quantum yield and a normalized relative emission function [see Appendix Eq.
Remember, these are total returns, or coupon yield plus any principal appreciation or depreciation during the quarter -- not yield.
7 percent--largely, Brown says, because of belated yield surges in China and Brazil.
If he had acted earlier he could have locked in a yield over 8 percent.
High yield: The yield to maturity must equal or exceed the AFR (for the month of issue) plus five percentage points.
For over a decade leading vendors have relied on SpencerLab to provide certified yield testing and associated Cost-per-Print analyses.
This strategy was largely successful with no-till and herbicide resistant soybeans, but will importing technology be as successful with information technology, such as VRA, yield mapping and other precision agriculture practices that require local adaptation?
Sodium hydroxide and hydrogen peroxide play a key role in the brightness-yield-strength relationship, but the alkali influences yield and strength to a far greater extent titan does the peroxide.