Nominal Yield

Business / Taxes / Nominal Yield: Nominal yield is the annual income that you receive from a bond or other fixed-income security divided by the par value of the security. The result, stated as a percentage, is the same as the rate of interest the security pays, also known as its coupon rate. If you purchase the security in the secondary market, at a price above or below par, your actual yield will be more or less than the coupon rate. So, for example, if you have $55 in annual income on a $1,000 bond, the nominal yield is 5.5%. But if you paid $975 for the bond in the marketplace, your actual yield is 5.64%. Similarly, if you had paid $1,050, your actual yield would be 5.23%.

Other Words for Nominal

Nominal Adjective Synonyms: titular, in name only, formal, pretended, so-called, self-styled, soi-disant, professed, purported, supposed, would-be, representational, represented, supposititious, proposed, propositional, puppet
MORE

Other Words for Yield

Yield Conjunction Synonyms: return, production, output, revenue, takings, gate, earnings, income, proceeds, profit, gain
Yield Adverb Synonyms: surrender, give up (the fight or struggle), give in, knuckle under, submit, cede, cry quits, throw in the towel or the sponge, capitulate, succumb, raise the white flag
MORE

Riding The Yield Curve

Business / Finance / Riding The Yield Curve: Buying long-term bonds in anticipation of capital gains as yields fall with the declining maturity of the bonds. MORE

Required Yield

Business / Finance / Required Yield: Generally referring to bonds; the yield required by the marketplace to match available expected returns for financial instruments with comparable risk. MORE

Reoffering Yield

Business / Finance / Reoffering Yield: In a purchase and sale, the yield to maturity at which an underwriter offers to sell bonds to investors. MORE

Links
Home
Glossary
Thesaurus