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
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Other Words for Yield

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
Yield Conjunction Synonyms: return, production, output, revenue, takings, gate, earnings, income, proceeds, profit, gain
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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

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