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Glossary
X-Y-Z Glossary of Terms Stocks/Options/Fixed Income
| yield |
In stocks and bonds, the amount of money returned to investors on their investments. Also known as Rate of Return.
For bonds, also see: Current Yield; Yield-to-Maturity; and Yield-to-Call. |
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| yield to call |
| A yield that would be realized on a callable bond, if the bond was redeemed on the next call date. |
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| yield to maturity |
| A yield calculated on the combination of the annual coupon (interest) payments to maturity, the realized difference between the (discount or premium) acquisition price of the issue and the par value at maturity. For interest bearing issues, the calculation includes the assumption that interest is earned on the interest received is at the same rate as the calculated yield to maturity. |
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| zero-coupon bonds |
| Bonds that pay no interest but are priced, at issuance, at a discount from their redemption par value, which usually is $1,000. The longer the term of the issue the greater the discount at issuance. |
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