# annual percentage yield

**annual percentage yield ( APY)**A precisely calculated measure of yield paid on a bank deposit account.__American Banker Glossary__————( APY)The effective, or true annual rate of return. The APY is the rate actually earned or paid in one year, taking into account the effect of compounding. The APY is calculated by taking one plus the periodic rate, raising it to the number of periods in a year and then subtracting one. For example, a 1% per month rate has an APY of 12.68% (1.01^12 -1).__Bloomberg Financial Dictionary__

*Financial and business terms.
2012.*

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**Annual Percentage Yield**— (APY) expresses an annual rate of interest taking into account the effect of compounding, usually for deposit or investment products (such as a certificate of deposit). It is analogous to the Annual percentage rate (APR), which is used for loans … Wikipedia**annual percentage yield**— Fin the effective or true annual rate of return on an investment, taking into account the effect of compounding. For example, an annual percentage rate of 6% compounded monthly translates into an annual percentage yield of 6.17% … The ultimate business dictionary**annual percentage yield**— /ˌænjuəl pəˌsentɪdʒ ji:ld/ noun the annual rate of compound interest earned by an account. Abbreviation APY … Dictionary of banking and finance**Annual Percentage Yield - APY**— The effective annual rate of return taking into account the effect of compounding interest. APY is calculated by: The resultant percentage number assumes that funds will remain in the investment vehicle for a full 365 days. The APY is similar in… … Investment dictionary**Annual percentage yield (APY)**— The effective, or true, annual rate of return. The APY is the rate actually earned or paid in one year, taking into account the affect of compounding. The APY is calculated by taking one plus the periodic rate and raising it to the number of… … Financial and business terms**annual effective yield**— See: annual percentage yield. Bloomberg Financial Dictionary … Financial and business terms**Annual percentage rate**— Parts of total cost and effective APR for a 12 month, 5% monthly interest, $100 loan paid off in equally sized monthly payments. The term annual percentage rate (APR), also called nominal APR, and the term effective APR, also called EAR,[1]… … Wikipedia**Annual Percentage Rate - APR**— The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the… … Investment dictionary**yield to call**— ( YTC) The annual percentage yield of a security calculated using the yield to maturity formula but with the assumption that the security is called on the first call date or on the first par call date. American Banker Glossary The percentage rate … Financial and business terms**yield-to-maturity**— ( YTM) The annual percentage yield of a security calculated in a specific manner. The yield to maturity is the single discount rate that, when applied to all future interest and principal payments, produces a net present value equal to the… … Financial and business terms