Yield: Difference between revisions
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imported>Doug Williamson m (Amended as per Glossary for Wiki alignment) |
imported>Doug Williamson m (Spacing 27/8/13) |
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Dividend yield. | Dividend yield. | ||
2. | 2. | ||
The rate of return ''on the current market value'' of an asset or liability, usually expressed as a percentage per annum. | The rate of return ''on the current market value'' of an asset or liability, usually expressed as a percentage per annum. | ||
For example, today’s yield to maturity of a bond measures the total return to an investor in the bond, reflecting both the interest income over the life of the bond and any capital gain (or loss) from today’s market value to the redemption amount payable at maturity. | For example, today’s yield to maturity of a bond measures the total return to an investor in the bond, reflecting both the interest income over the life of the bond and any capital gain (or loss) from today’s market value to the redemption amount payable at maturity. | ||
When the market yield to maturity is applied to discount the future cashflows of the asset or liability, the net present value of all of the cashflows - including the current market purchase price - is Nil. | When the market yield to maturity is applied to discount the future cashflows of the asset or liability, the net present value of all of the cashflows - including the current market purchase price - is Nil. | ||
== See also == | == See also == | ||
Revision as of 14:40, 27 August 2013
1.
Dividend yield.
2.
The rate of return on the current market value of an asset or liability, usually expressed as a percentage per annum.
For example, today’s yield to maturity of a bond measures the total return to an investor in the bond, reflecting both the interest income over the life of the bond and any capital gain (or loss) from today’s market value to the redemption amount payable at maturity.
When the market yield to maturity is applied to discount the future cashflows of the asset or liability, the net present value of all of the cashflows - including the current market purchase price - is Nil.
