Realized Yield

Realized Yield
The actual amount of return earned on a security investment over a period of time. This period of time is typically the holding period which may differ from the expected yield at maturity. The realized yield also includes the returns that have been earned from reinvested interest, dividends and other cash distributions.

The realized yield tends to differ from the yield at maturity in scenarios where the holding period is less than that of the maturity date. In other words, the security is settled or sold prior to the maturity date given at the time of purchase.

For example, suppose an investor purchases a 10-year bond for $1,000 that issues a 5% annual coupon. Furthermore, if the investor sells the bond for $1,000 at the end of the first year (and after receiving the first coupon payment), her realized yield would only include the $50 coupon payment.


Investment dictionary. . 2012.

Игры ⚽ Нужно решить контрольную?

Look at other dictionaries:

  • realized yield — The holding period return actually generated from an investment in a bond. Bloomberg Financial Dictionary …   Financial and business terms

  • realized yield — The total return obtained on a security, including that from the investment of any interest paid …   Big dictionary of business and management

  • Realized compound yield — Yield assuming that coupon payments are invested at the going market interest rate at the time of their receipt and rolled over until the bond matures. The New York Times Financial Glossary …   Financial and business terms

  • realized compound yield — yield assuming that coupon payments are invested at the going market interest rate at the time of their receipt and held thus until the bond matures. Bloomberg Financial Dictionary …   Financial and business terms

  • holding-period yield — ( HPY) The annual rate of return actually realized on an investment in a bond. Bloomberg Financial Dictionary …   Financial and business terms

  • holding period yield — ( HPY) The annual rate of return actually realized on an investment in a bond. Bloomberg Financial Dictionary …   Financial and business terms

  • bear fruit — YIELD RESULTS, get results, succeed, meet with success, be successful, be effective, be profitable, work, go as planned; informal pay off, come off, pan out, do the trick, do the business. → bear * * * I figurative yield positive results plans… …   Useful english dictionary

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

  • HEBREW GRAMMAR — The following entry is divided into two sections: an Introduction for the non specialist and (II) a detailed survey. [i] HEBREW GRAMMAR: AN INTRODUCTION There are four main phases in the history of the Hebrew language: the biblical or classical,… …   Encyclopedia of Judaism

  • Germany — /jerr meuh nee/, n. a republic in central Europe: after World War II divided into four zones, British, French, U.S., and Soviet, and in 1949 into East Germany and West Germany; East and West Germany were reunited in 1990. 84,068,216; 137,852 sq.… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”