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Average Annual Yield |
Also found in: Acronyms | 0.01 sec. |
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Average Annual Yield The total yieldon a multi-year investment or portfolio, often a certificate of deposit, divided by the total term of the investment. Calculating the average annual yield assumes that all interest accrued without any withdrawals over the length of the investment. Average annual yield. Average annual yield is the average yearly income on an investment, expressed as a percentage. You can calculate the average annual yield by adding all the income you received on an investment and dividing that amount by the number of years the money was invested. So if you receive $60 interest on a $1,000 bond each year for ten years, the average annual yield is 6% ($60 ÷ $1,000 = 0.06 or 6%). Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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