effective yield

Effective yield

Yield or return on a short-term investment after adjustment for the change in exchange rates over the period of concern.

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.

effective yield

A calculation of the return on an investment that considers the price paid,the time held,and the interest received.

References in periodicals archive ?
average earning assets, which increased 10% to $98 billion at June 30, 2019, more than offsetting the lower effective yield on retail
As we move ahead, we would expect the benefits from our past years' refinancing and reset program will be better reflected in our CLO investments' 2019 distributions and portfolio activities, which has started to be borne out as the weighted average effective yield on our CLO equity portfolio increased quarter over quarter."
The Series 1 commercial paper has a tenor of 90 days, an effective yield of 11.59 per cent and a discount rate of 11.268 per cent.
There are ten investment options for Secured NCDs with monthly or annual interest payment frequency or on maturity redemption payments with effective yield per annum, ranging from eight to nine percent.
The Debentures were sold at a price of $999.95 per $1,000 principal amount with an effective yield of 3.209% if held to maturity.
The Class A Fixed Rate Secured Notes Series 2018-1 will be sold at a price equal to 99.99985% of their face value, with an effective yield of 3.875%.
The Additional 2026 Notes were priced at 103% of par plus accrued interest from and including June 14, resulting in an effective yield of 5.398%.
The effective yield of the Bank of America Merrill Lynch High-Yield Energy Index rose to more than 21 per cent on February 11, the most since it was created in 1997.
Consider this: the effective yield on 7.36 per cent 10-year NTPC bonds for an individual in the 30.9 per cent tax bracket is 10.65 per cent.
"The improved guest experience and effective yield management have led to significant profit growth."
The cold-forming process used in the fabrication of lightweight steel members leads generally to an increase of the effective yield strength.

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