bond yield
Fixed-income investor's percentage
Bond yield is the return an investor receives from a bond, expressed as a percentage.
The simplest form is the coupon yield—the annual interest payment divided by the bond's face value.
More useful is the yield to maturity, which accounts for the purchase price and time remaining: The ten-year Treasury yield rose to 4.5%.
Bond yields move inversely to bond prices—when prices fall, yields rise.
- interest rateCost of borrowing money
- corporate bondsDebt issued by businesses
- investment gradeCreditworthy debt classification
- credit riskPotential for borrower nonpayment
- risk premiumExtra yield for uncertainty
inflation rates · duration · par value · debenture · spread · government bonds · fixed income · junk bonds · sovereign · bondholder · monetary policy · discount rate · interest rate risk · basis points · return · municipal bonds · treasury · safe haven
- financial termswealth, asset, currency, balance sheet, audit
- bondscorporate bonds, municipal bonds, treasury bonds, savings bonds, junk bonds
- ratestax rate, interest rate, exchange rate, mortgage rate, loan rate
- corporate financecost of capital, investment, capital markets, NPV, debt financing
- financial metricsROI, ROE, EPS, P/E ratio, PE ratio
- investment returnsrate of return, dividends, ROI, capital gains, returns