Yield

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.

See also

• Credit spread
• Discount instruments
• Discount rate
• Discount yield
• Dividend yield
• Interest
• Interest rate
• Sterling commercial paper

Other links

Triumph with timelines, The Treasurer, March 2013

• Yield spread
• Yield to maturity