Money market yield


Also found in: Acronyms.

Money market yield

A bond quotation convention based on a 360-day year and semiannual coupons. See: Bond equivalent yield.

Bond Equivalent Yield

The non-annual yield of a bond expressed in annual terms. The bond equivalent yield helps an investor compare the return of a bond that pays a coupon on an annual basis with a bond with semi-annual, quarterly, or any other coupons. It is calculated thusly:

Bond equivalent yield = ((face value - purchase price) / purchase price) * (365 / days until maturity). See also: Annual Percentage Rate.
References in periodicals archive ?
The first generation product to obtain acceptance was adjustable rate preferred stock, a security with a dividend rate that is adjusted quarterly to reflect changes in money market yields.
However, some research analysts say money market yields and government borrowing may force the central bank to enhance the key rate but growing consensus us it may decide to maintain the policy rate.
Many larger and well-capitalized credit unions are reporting very strong deposit inflows, but those with low capital levels are discouraging deposits by lowering CD and money market yields, CUNA Mutual said.
The ten largest banks, a larger proportion of whose loans are repriced in relation to money market yields rather than the prime rate, faced the steepest decline in the average loan rate--about 180 basis points.
Depository institutions are likely to continue reducing their rates on retail deposits in lagged response to the steep declines in money market yields before year-end.
Before the elections, Japanese short- and long-term money market yields had been rising slowly in the expectation that an increase in the Bank of Japan's discount rate would be announced soon afterward.
money market yields and their associated currency movements through a fully transparent, low fee ETF structure," said Bruce Lavine, WisdomTree President & COO.
With billions in assets, they offer CD and Money Market yields that consistently exceed the national averages, according to a recent survey of financial institutions by BanxQuote.
e-Savings Advantages -- Low minimum balance to open -- Most are free of monthly maintenance fees -- Make deposits or withdrawals from your bank's checking account -- Most offer free ATM withdrawals with surcharge rebates -- Highly comparable rates to money market yields CD Disadvantages -- Higher minimum balance to open -- No fees but early withdrawal penalties can apply -- Standard CDs are locked-in for the term, no additions or withdrawals allowed -- No ATM access -- Higher yields require a longer investment period
He notes that they currently are yielding approximately 4 percent versus money market yields, which are hovering below 1 percent.
Meanwhile, despite the tightening of money market yields, 10-year bond yields are close to the lows reached during the Asia crisis, offering corporate issuers an opportunistic window for lengthening maturities.