# Average annual yield

Also found in: Acronyms.

## 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 ?
The average annual yield of the robotic herd is 8,705 litres per cow but high feed costs offset savings in labour and milk quality is only modest.
Royal London defended its decision, saying the average annual yield on a 25-year policy if it matured today would still be 13.
Average annual yields of honey from two harvests at this location were once more than 200 litres, but the hunters report that the bee population has recently declined and the yield from this harvest was only 80 litres.
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