| Yellow Sheets |
Wholesale quote sheet for corporate
bonds used by dealers.
|
Yield
|
The rate of return
on an investment. There are as many computations as
there are different yields, such as current yield and
yield to maturity. For example, bonds provide income
in the form of interest, and stocks in the form of dividends. |
| Yield Advantage |
The additional income an investor
will receive on purchasing a convertible security instead
of the ordinary share of the same company assuming that
the security can be converted into those same ordinary
shares. For the calculation to be meaningful, allowance
must be made for the conversion costs, reflected in
the differential between the conversion price and the
current market price. |
| Yield Curve |
A graph depicting yield as it relates
to maturity. If short-term rates are lower than long-term
rates, it is called a positive yield curve. If short-term
rates are higher, it is called a negative, or inverted,
yield curve. If there is little difference, it is called
a flat yield curve. |
| Yield Elbow |
The point on the yield curve that
indicates the year at which the economy's highest interest
rates occur. |
| Yield To Call |
The percentage a bond will yield
to the date at which it is eligible to be redeemed by
its issuer. |
| Yield To Maturity (YTM) |
The effective annual rate of return
earned by a bond if held to maturity. This rate takes
into account the amount paid for the bond, the length
of time to maturity, and assumes coupon payments can
be reinvested at the yield to maturity. |