# Realized yield

## Realized yield

The holding-period return actually generated from an investment in a bond.

## Realized Yield

The return on a bond during the time one holds the bond, usually expressed in annualized terms. The realized yield is calculated by taking the income and other gains on the bond and dividing by the historical cost. It is a useful way to compare the expected return to the actual return, though with bonds there is rarely a difference unless the bond defaults.
References in periodicals archive ?
80% over the next five years, the realized yield on the TIPS will exceed that of the regular bond.
A large gap exists between the potential and realized yield for almost all the major crops.
This shortens the effective maturity of the REMIC bonds and raises the realized yield over the quoted yield.
The quoted yield will not accurately reflect an investor's potential realized yield unless actual prepayments equal assumed prepayments.
RERC's findings highlight the disconnected relationship between required and realized yield rates, and demonstrate the variation between return expectations over io-, five- and one-year time periods.
However, all other property types show a negative variance for a 10-year period, indicating that over this time, realized yield rates have not met required yield rates.
Adjustments estimated below are affected by how, on balance, interest rate shifts impact the realized yield on dedicated portfolios.
Mathematical Expression Omitted] where r' = realized yield on dedicated portfolios during period between t = 0 and t = k; g' = realized rate of wages growth during period between t = 0 and t=k; (r'-g'), k = realized differential; (r'-g')t=o = contemporaneous differential;7 X' = coefficient of adjustment for dedicated portfolios; and k length of period.
Consequently, the realized yield when principal is prepaid after year one (rather than after year two as assumed when computing the quoted yield) is less than the quoted yield of 9%.
If the bond is not called as expected after one year, the actual realized yield will be 9%.
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