redemption yield

The total return from a security, such as, a bond, if it is held to its maturity date. It reflects both the income and capital gain/loss that it will make when it matures. Financial Services Glossary

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redemption yield redemption yield yield2

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   Current yield increased or decreased to take account of the capital gain or loss on redemption.

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redemption yield UK US noun [C] (also maturity yield) FINANCE
the amount of money an investor will get back from a bond if they keep it for the full period agreed to when they bought it: »

If the bond is held until maturity, the redemption yield would be around 4.5%.

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a gross/net redemption yield


Financial and business terms. 2012.

Look at other dictionaries:

  • redemption yield — noun (finance) The total return from a stock, including annual interest and any capital gain, calculated as a percentage of the price to be repaid at a fixed future date • • • Main Entry: ↑redemption …   Useful english dictionary

  • redemption yield — See: gross redemption yield, yield …   Accounting dictionary

  • redemption yield — See gross redemption yield; yield …   Big dictionary of business and management

  • redemption yield — /rɪ dempʃən ji:ld/ noun a yield on a security including interest and its redemption value …   Dictionary of banking and finance

  • redemption yield — Fin the rate of interest at which the total of the discounted values of any future payments of interest and capital is equal to the current price of a security …   The ultimate business dictionary

  • gross redemption yield — The total return on a bond, taking into account both coupon and the capital gain or loss on maturity. It is calculated as the flat yield of the bond plus any capital gain on redemption (less any capital loss), where the capital gain or loss is… …   Financial and business terms

  • grossed up net redemption yield — The pre tax rate of return which a bank deposit account would need to generate to give the same net post tax yield as a gilt ( gilts). It is usually calculated as the following, where the net redemption yield is the net yield available on a gilt… …   Financial and business terms

  • net redemption yield — The gross redemption yield on a bond less any tax charges suffered by the investor. For a private investor investing in gilts, it is usually calculated as [(Gross coupon ∕ Market price) x (1 individual s marginal tax rate) + (Par Market price ∕… …   Financial and business terms

  • gross redemption yield — noun The average annual yield on a gilt edged stock, including dividend payments and any capital gain or loss • • • Main Entry: ↑gross …   Useful english dictionary

  • gross redemption yield — effective yield; = yield to maturity The internal rate of return of a bond bought at a specified price and held until maturity; it therefore includes all the income and all the capital payments due on the bond. The tax payable on the interest and …   Accounting dictionary

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