Bond Yields

August 26th, 2017 by Kara in

Yield refers to the profits made on an investment.  When referring to bonds there are four different types of yields; the coupon, which is the fixed interest rate when the bond is issued, the current yield, the interest rate as a percentage of the current price of the bond, yield to maturity, which is the estimated return on investment if the bond is held until maturity date, and the taxable-equivalent yield which is used in tax exempt bonds and is determined by the owners tax bracket.

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