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Coupon equivalent yield |
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Definition of Coupon equivalent yieldCoupon equivalent yieldTrue interest cost expressed on the basis of a 365-day year.
Related Terms:Annual percentage yield (APY)The effective, or true, annual rate of return. The APY is the rate actually Bond equivalent yieldBond yield calculated on an annual percentage rate method. Differs from annual Bond-equivalent basisThe method used for computing the bond-equivalent yield. Bond-equivalent yieldThe annualized yield to maturity computed by doubling the semiannual yield. Capital gains yieldThe price change portion of a stock's return. Cash and equivalentsThe value of assets that can be converted into cash immediately, as reported by a Cash equivalentA short-term security that is sufficiently liquid that it may be considered the financial Cash-equivalent itemsTemporary investments of currently excess cash in short-term, high-quality Certainty equivalentAn amount that would be accepted in lieu of a chance at a possible higher, but Common stock equivalentA convertible security that is traded like an equity issue because the optioned Convenience yieldThe extra advantage that firms derive from holding the commodity rather than the future. Corporate taxable equivalentRate of return required on a par bond to produce the same after-tax yield to CouponThe periodic interest payment made to the bondholders during the life of the bond. Coupon paymentsA bond's interest payments. Coupon rateIn bonds, notes or other fixed income securities, the stated percentage rate of interest, usually Current couponA bond selling at or close to par, that is, a bond with a coupon close to the yields currently Current yieldFor bonds or notes, the coupon rate divided by the market price of the bond. Current-coupon issuesRelated: Benchmark issues Dividend yield (Funds)Indicated yield represents return on a share of a mutual fund held over the past 12 Dividend yield (Stocks)Indicated yield represents annual dividends divided by current stock price. Earnings yieldThe ratio of earnings per share after allowing for tax and interest payments on fixed interest Effective annual yieldAnnualized interest rate on a security computed using compound interest techniques. Equivalent annual annuityThe equivalent amount per year for some number of years that has a present Equivalent annual benefitThe equivalent annual annuity for the net present value of an investment project. Equivalent annual cash flowAnnuity with the same net present value as the company's proposed investment. Equivalent annual costThe equivalent cost per year of owning an asset over its entire life. Equivalent bond yieldAnnual yield on a short-term, non-interest bearing security calculated so as to be Equivalent loanGiven the after-tax stream associated with a lease, the maximum amount of conventional Equivalent taxable yieldThe yield that must be offered on a taxable bond issue to give the same after-tax Fixed-income equivalentAlso called a busted convertible, a convertible security that is trading like a straight Flattening of the yield curveA change in the yield curve where the spread between the yield on a long-term Full coupon bondA bond with a coupon equal to the going market rate, thereby, the bond is selling at par. High-coupon bond refundingRefunding of a high-coupon bond with a new, lower coupon bond. High-yield bondSee:junk bond. Indicated yieldThe yield, based on the most recent quarterly rate times four. To determine the yield, divide Level-coupon bondBond with a stream of coupon payments that are the same throughout the life of the bond. Liquid yield option note (LYON)Zero-coupon, callable, putable, convertible bond invented by Merrill Long coupons1) Bonds or notes with a long current maturity. Low-coupon bond refundingRefunding of a low coupon bond with a new, higher coupon bond. Liquid yield option note (LYON)Zero-coupon, callable, putable, convertible bond invented by Merrill Lynch & Co. Long coupons1) Bonds or notes with a long current maturity. Non-parallel shift in the yield curveA shift in the yield curve in which yields do not change by the same Parallel shift in the yield curveA shift in the yield curve in which the change in the yield on all maturities is Pass-through coupon rateThe interest rate paid on a securitized pool of assets, which is less than the rate Pure yield pickup swapMoving to higher yield bonds. Realized compound yieldyield assuming that coupon payments are invested at the going market interest Relative yield spreadThe ratio of the yield spread to the yield level. Reoffering yieldIn a purchase and sale, the yield to maturity at which the underwriter offers to sell the bonds Required yieldGenerally referring to bonds, the yield required by the marketplace to match available returns Riding the yield curveBuying long-term bonds in anticipation of capital gains as yields fall with the Steepening of the yield curveA change in the yield curve where the spread between the yield on a long-term Weighted average couponThe weighted average of the gross interest rate of the mortgages underlying the Weighted average portfolio yieldThe weighted average of the yield of all the bonds in a portfolio. YieldThe percentage rate of return paid on a stock in the form of dividends, or the effective rate of interest Yield curveThe graphical depiction of the relationship between the yield on bonds of the same credit quality Yield curve option-pricing modelsModels that can incorporate different volatility assumptions along the Yield curve strategiesPositioning a portfolio to capitalize on expected changes in the shape of the Treasury yield curve. Yield ratioThe quotient of two bond yields. Yield spread strategiesStrategies that involve positioning a portfolio to capitalize on expected changes in Yield to callThe percentage rate of a bond or note, if you were to buy and hold the security until the call date. Yield to maturityThe percentage rate of return paid on a bond, note or other fixed income security if you Yield to worstThe bond yield computed by using the lower of either the yield to maturity or the yield to call Zero coupon bondSuch a debt security pays an investor no interest. It is sold at a discount to its face price Zero-coupon bondA bond in which no periodic coupon is paid over the life of the contract. Instead, both the CASH AND CASH EQUIVALENTSThe balance in a companyâ€™s checking account(s) plus short-term or temporary investments (sometimes called â€śmarketable securitiesâ€ť), which are highly liquid. dividend yield ratioCash dividends paid by a business over the most Bond Equivalent YieldBond yield calculated on an annual percentage rate method Coupon / CouponsThe periodic interest payment(s) made by the issuer of a bond Coupon RateThe rate of interest paid on a debt security. Generally stated on an Effective Annual YieldAnnualized rate of return on a security computed using compound Yield CurveA graphical representation of the level of interest rates for Yield to MaturityThe measure of the average rate of return that will be earned on a Zero-coupon BondA security that makes no interest payments; it is sold at a discount equivalent units of production (EUP)an approximation of the number of whole units of output that could have been labor yield variance(standard mix X actual hours X standard rate) - (standard mix X standard hours X standard rate); material yield variance(standard mix X actual quantity X standard price) - (standard mix X standard quantity X standard price); process quality yieldthe proportion of good units that resulted from the activities expended yieldthe quantity of output that results from a specified input yield ratiothe expected or actual relationship between input and output CouponDetachable certificate attached to a bond that shows the amount of Coupon datesThe dates when the coupons are paid. Typically a bond pays Coupon rateThe nominal interest rate that the issuer promises to pay the Par yield curveThe yield curve of bonds selling at par, or face, value. Spot curve, spot yield curveSee Zero curve. Yield a. Measure of return on an investment, stated as a percentage of price. Yield curveGraph of yields (vertical axis) of a particular type of security Yield to maturityA measure of the average rate of return that will be earned Zero curve, zero-coupon yield curveA yield curve for zero-coupon bonds; Zero-coupon bond, or ZeroA bond that, instead of carrying a coupon, is sold Production yield varianceThe difference between the actual and budgeted proportions couponThe interest payments paid to the bondholder. coupon rateAnnual interest payment as a percentage of face value. current yieldAnnual coupon payments divided by bond price. equivalent annual costThe cost per period with the same present value as the cost of buying and operating a machine. yield curveGraph of the relationship between time to maturity and yield to maturity. yield to maturityInterest rate for which the present value of the bondâ€™s payments equals the price. CouponThe annual interest payment associated with a bond. Coupon BondAny bond with a coupon. Contrast with discount bond. Current YieldThe percentage return on a financial asset based on the current price of the asset, without reference to any expected change in the price of the asset. This contrasts with yield-to-maturity, for which the calculation includes expected price changes. See also yield.
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