Average annual yield

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Average Annual Yield

The total yield on 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%).

References in periodicals archive ?
Net investment income and average annual yields on investments after income taxes for both the three and nine months ended September 30, 2015 decreased slightly due to the maturity and replacement of higher yielding investments purchased when market interest rates were higher, with lower yielding investments purchased during lower low interest rate environment.
The region offers the highest average annual yields for investors of 6.
Over the entire simulation horizon, the averages for the 3-year and 7-year Treasury yields are slightly below the average annual yields reflected in the current forward curve given the delayed monetary-policy response.
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