Effective Annual Yield

Also found in: Acronyms, Wikipedia

0.01 sec.

Effective annual yield

Annualized interest rate on a security computed using compound interest techniques.

Annual Percentage Yield

The yield on an investment in one year, taking into account the effects of compounding. For example, if one has a fixed-income investment such as certificate of deposit that pays 3% in interest each month, the annual percentage yield is more than 3% because compounding the interest results in a (slightly) higher return each month. In this example, the annual effective yield is calculated thus:

Annual percentage yield = (1.03)^12 - 1 = .43 = 43%, where 1.03 is 1 plus the monthly interest and 12 is the number of times in a year interest is compounded. It is also known as the annual effective yield.

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.

?Page tools

Printer friendly
Cite / link

Feedback
Add definition

Mentioned in	?		References in periodicals archive	?		Financial browser	?		Full browser	?
coupon-equivalent yield Equivalent Bond Yield Rendimiento anual efectivo Yield to warrant call Yield to Warrant Expiration			The loans typically mature in less than two years and have effective annual yields to the Company in the 15% to 30% range. Fog Cutter Capital Group Inc. Reports Sale of Mortgage-Backed ... by Business Wire Series Q Notes held to June 1, 2009 will have an effective annual yield of 5. NSPI Completes Offering of $75,000,000 Medium Term Note Issue by Business Wire			EDC EDGAR EDGAR Electronic Data Gathering, Analysis and Retrieval System Edge Act Edge Act Corporation Edge Corporations Edgy EDI Edict Education Expense Education IRA Education Savings Account Educazione continua Edward George EE EEC EEK Efecto de desplazamiento Efecto riqueza Efectos comerciales en eurodivisas Efeito de expulsao Efeito riqueza Effectifs personnel effective age Effective Annual Interest Rate Effective Annual Yield Effective call price Effective convexity effective date Effective Debt Effective duration effective gross income effective interest rate Effective Margin Effective Net Worth effective procuring cause Effective Rate Effective Rate of Interest effective rental rate Effective Sale effective spread Effective Tax Rate effective yield Effet d'eviction Effet de commerce en eurodevises Effet de patrimoine Effeto di comodo Effets publics Effetto Effetto alone Efficiency			effecter effectible effectible effectible effectible Effectifs personnel effecting effecting effecting effecting effectio Effection effective effective effective effective effective Effective Actions Per Minute Effective Active Acoustics Simulation Effective Address Effective Address effective age effective air path effective ampere effective angle of attack Effective annual interest rate Effective annual interest rate Effective Annual Interest Rates Effective annual rate Effective Annual Rates Effective Annual Yield Effective Annual Yields Effective Annualized Rate effective antenna length Effective Anterograde Refractory Period effective aperture effective area effective area of reinforcement Effective Arterial Blood Volume Effective Arterial Volume effective atmosphere Effective Atmospheric Angular Momentum Effective atomic number Effective atomic number Effective Automation Gains Efficiency Results Effective Availability Factor Effective Average Tax Rate Effective Axial Stiffness of the Body Effective Balloon Dilating Area to Body Surface Area Effective Balloon Dilating Diameter effective bandwidth effective before Effective Behaviour Support Effective Billing Date Effective Bit Rate effective bond

Financial Dictionary

Free Tools:	For surfers: Free toolbar & extensions \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup

Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.