yield

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Yield

The percentage return paid on a stock in the form of dividends, or the effective rate of interest paid on a bond or note.

Yield

The income one receives from an investment, rather than its capital appreciation. The yield is calculated as the coupons or dividends the investor receives in a year expressed as a percentage of the cost of the investment.

yield

The percentage return on an investment. A given investment can have a variety of yields because of the many methods used to measure yield. For example, a bond's yield may be stated in terms of its returns if held to maturity, if held to the call date, or if held to the put date; or the yield may be calculated simply on the basis of the interest the bond pays compared with its current market price. Also called return. See also current yield, dividend yield, yield to average life, yield to call, yield to maturity, yield to put.

Yield.

Yield is the rate of return on an investment expressed as a percent.

Yield is usually calculated by dividing the amount you receive annually in dividends or interest by the amount you spent to buy the investment.

In the case of stocks, yield is the dividend you receive per share divided by the stock's price per share. With bonds, it is the interest divided by the price you paid. Current yield, in contrast, is the interest or dividends divided by the current market price.

In the case of bonds, the yield on your investment and the interest rate your investment pays are sometimes, but by no means always, the same. If the price you pay for a bond is higher or lower than par, the yield will be different from the interest rate.

For example, if you pay $950 for a bond with a par value of $1,000 that pays 6% interest, or $60 a year, your yield is 6.3% ($60 ÷ $950 = 0.0631). But if you paid $1,100 for the same bond, your yield would be only 5.5% ($60 ÷ $1,100 = 0.0545).

yield

the return on a FINANCIAL SECURITY, expressed in money terms, related to the current market price of that security, to show the percentage return on the investment. Yield can refer to the INTEREST RATE payable on the market price of a BOND (INTEREST YIELD); or DIVIDEND rate payable on the market price of a SHARE (DIVIDEND YIELD); or company profit per share (after tax) related to the price of the share (EARNINGS YIELD). For example, a bond with a face value of £100 and a rate of interest of 10% generates a nominal return of £10 per year. If, however, the bond can be purchased for £50 on the open market, then the yield is 20%, representing 20% return on the £50 invested. The lower the purchase price of a bond or share with a given coupon rate of interest or dividend or profit, the higher its yield will be, and vice versa. There is thus an inverse relationship between the price paid for a bond or share and its yield. The term flat yield or current yield is sometimes used to describe a yield calculation which does not take account of the redemption value of a bond. Yields which take into account not only the annual interest receivable but also any capital profit/loss on redemption of the bond are termed redemption yields. Where the current market price of a bond is below its specified redemption price, the potential profit on redemption must be divided by the number of years to the redemption date of the bond, and this annual profit equivalent added to the flat yield on the bond to arrive at its redemption yield. Where the current market price of the bond is above its specified redemption price the annualized potential loss on redemption must be deducted from the flat yield in calculating redemption yield. For example, a bond offering an interest payment of £10 per year and with a current market price of £50 would have a flat yield of 20%. If, in addition, the specified redemption price of the bond is £100 in five years' time, then the bond promises a potential profit of £100 – £50 = £50 which is equivalent to an annualized profit of £50 ÷ 5 = £10 per year or an additional return of £10 ÷ £50 or 10%. This would be added to the flat yield of 20% to give a redemption yield of 30%.

yield

the return on a FINANCIAL SECURITY, expressed in money terms, related to the current market price of that security to show the percentage return on the investment. For example, a financial security (e.g. a BOND) with a face value of £100 and an INTEREST RATE of 5% generates a nominal return of £5 per year. If, however, the bond can be purchased for £50 on the open market, then the yield is 10%, representing 10% return on the £50 invested. The lower the purchase price of a bond or share with a given coupon rate of interest or dividend or profit, the higher its yield will be, and vice-versa. There is thus an inverse relationship between the price paid for a bond or share and its yield.

The term flat yield or current yield is sometimes used to describe a yield calculation that does not take account of the redemption value of a bond. Such a calculation would be appropriate for IRREDEEMABLE FINANCIAL SECURITIES. Yields that take into account not only the annual interest receivable but also any capital profit/loss on redemption of the bond are termed redemption yields. Where the current market price of a bond is below its specified redemption price, the potential profit on redemption must be divided by the number of years to the redemption date of the bond, and this annual profit equivalent added to the flat yield on the bond to arrive at its redemption yield. Where the current market price of the bond is above its specified redemption price, the annualized potential loss on redemption must be deducted from the flat yield in calculating redemption yield. For example, a bond offering an interest payment of £5 per year and with a current market price of £50 would have a flat yield of 10%. If, in addition, the specified redemption price of the bond is £100 in five years’ time, then the bond promises a potential profit of £100 - £50 = £50, which is equivalent to an annualized profit of £50 ÷ 5 = £10 per year or an additional return of £10 ÷ £50 or 20%. This would be added to the flat yield of 10% to give a redemption yield of 30%. Such a calculation would be appropriate for REDEEMABLE FINANCIAL SECURITIES.Yield can refer to the interest rate payable on the market price of a bond (INTEREST YIELD); or DIVIDEND rate payable on the market price of a SHARE (DIVIDEND YIELD); or company profit per share (after tax) related to the price of the share (EARNINGS YIELD).

yield

A measurement of the rate of earnings for an investment.

References in periodicals archive ?
However, the higher CWT and BF or the lower EMA in yield grade 'C' evidently justifies the equation that derived QGI and subsequently YDG (see Materials and Methods), denoting that a carcass with higher CWT and BF would potentially have a lower QGI due to negative function effect of BF and CWT, and thus a lower YDG of that carcass; whereas higher EMA values would imply more weight to derive a higher QGI (due to positive function effect) or higher yield grades.
Least squares means ([+ or -] SE *) of for body weight, carcass traits and carcass prices of Holstein steers by yield grade Yield grade (1) Trait ** A B (N = 3,948) (N = 53,168) BWT 566.
Hanwoo carcass auction prices by three sex categories (1 = female, 2 = bull, 3 = steer) and by carcass quality and yield grades were used for estimation of economic weights of carcass traits.
There was tendency to increase the carcass price by around 780 wons/kg as quality and yield grades in combination increased to more retail beef yielding and higher quality carcasses.
2003) reported that supplementation of protected canola lipid improved yield grade, marbling score and quality grade without affecting carcass weight, rib eye area and back fat thickness.
34 (b) Yield grade (2) (A:B:C, head) 9:6:0 8:7:0 5:7:3 Quality traits (3) Marbling score 5.
Carcasses of early-weaned steers may be too fat and receive less-desirable USDA yield grades compared to those of traditionally weaned calves of similar genetics and age when harvested together," Waterman says.
Natural rubber has been modified in many ways to yield grades with enhanced properties.
If successful in converting these resources and if these holes yield grades equal to that of the known deposit, this program, estimated to cost C$750,000, would translate into a per pound discovery cost of about US$0.
The company also said it sees increased demand for its printing papers because its high yield grades save customers money over similar quality competitive papers and because its digital papers do not require special extra treatments to run on high-speed digital color laser printing presses.
1995) stated that, generally, Vit E supplementation has not affected feedlot performance, carcass characteristics, or quality and yield grades of beef cattle.