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| Yield |
In
general, a return on an investor's capital
investment. For bonds,
the coupon rate of
interest divided by the purchase price, called current yield. Also,
the rate-of-return on
a bond, taking into account the total of annual interest payments,
the purchase price, the redemption value, and the amount of time
remaining until maturity. |
| Yield
to Call |
The
percentage rate of a bond or
note, if your were to buy and hold the security until the call date.
This yield is valid only if the security is called prior to maturity.
Generally bonds are callable over
several years and normally are called at a slight premium. The calculation
of yield to call is based on the coupon
rate, length of time to the call and the market
price. |
| Yield
to Maturity |
The
yield of a bond to
maturity takes into account the price discount from or premium over
the face amount. It is greater than the current yield when the bond
is selling at a discount and less than the current yield when the
bond is selling at a premium. |
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| Zero
Coupon Bond |
A
bond which pays no interest but is priced, at issue, at a discount
from its redemption
price. |
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