Yield To Maturity Ytm

Key takeaways – Yield to Maturity (YTM) is the internal rate of return (IRR) on a bond if you buy it today, receive all…

Yield To Call

Yield to call (YTC) is the annualized rate of return an investor will earn if a callable bond is held only until its first…

Yield Pickup

Summary Yield pickup is a bond portfolio strategy that increases current income by selling a lower‑yielding bond and buying a higher‑yielding bond. The extra…

Yield Maintenance

Key takeaways – Yield maintenance is a prepayment remedy (a “make-whole” premium) designed to protect a lender or investor from the interest income lost…

Yield Curve Risk

Key takeaways – Yield curve risk is the chance that changes in the shape or level of the yield curve will produce adverse price…

Yield Curve

A yield curve is a graph that plots the yields (interest rates) of bonds that have the same credit quality but different maturities. The…

Yield Based Option

A yield‑based option (also called an interest‑rate option) is an option contract whose underlying is the yield (interest rate) of a security rather than…

Yield To Average Life

Key takeaways – Yield-to-average life (YAL) is the yield calculated by treating an amortizing or prepaid security as if it repays principal in a…

Yield On Cost Yoc

Key takeaways – Yield on Cost (YOC) = current annual dividend income ÷ original purchase cost. It shows the dividend yield relative to the…

Yield On Earning Assets

Introduction Yield on earning assets is a key solvency and performance metric for banks and other financial institutions. It measures how much interest income…