Effective Yield
The yield of a bond, assuming that you reinvest the coupon (interest payments) once you have received payment.
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Effective Yield - The annual return on an investment that is calculated by dividing the coupon interest rate by the amount invested expressed as a percent of par.
Annual effective yield: Measure of the actual annual return on an account after interest is compounded.
Annual percentage rate (APR): Interest rate that borrowers pay on a loan. Most of a loan’s up-front fees are factored into the APR.
Annual effective yield
The actual annual return on an account after interest is compounded.
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Annual effective yield
See: Annual percentage yield.
Annual exclusion
A tax rule allowing the deduction of certain income from taxation.
Effective yield
Yield or return on a short-term investment after adjustment for the change in exchange rates over the period of concern.
Efficiency
The degree and speed with which a market accurately incorporates information into prices.
However, the effective yield on the bond may well be different, since the market price of the bond is usually different from the face value.
Yield return is calculated from
where y is the security's yield to maturity, and δt is the elapsed time.
6% effective yield ($1.50 in an option payment divided by your $32 purchase price) over the next six months. Over this same time, you'd also receive another 1.5% in dividend payments from McCormick & Co.
Applies mainly to convertible securities. Effective yield of usable or Synthetic convertible Bonds determined against the first date at which the warrants can be called.
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Secondly, actively managed funds will have higher expense ratio's; thereby, dropping their effective yield and making index ETFs more attractive.
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Definition
Discount point
An amount paid by a borrower to a lender at the time the loan is made to increase the loan's effective yield. One point is equal to one percent of the loan amount.
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Compounding of interest using the shortest possible interval of time. Although continuous compounding sounds impressive, in practice it results in virtually the same effective yield as daily compounding.
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When floating-rate securities are purchased at a price other than par, the difference between the purchase price and par is converted to a percentage and discounted for the remaining life of the security to calculate an effective yield, ...
Note that in this and subsequent formulae, the symbol r is used for the force of interest, i.e. the logarithm of (1+j) where j is the interest yield expressed as an annual effective yield.
Differs from annual effective yield. [Harvey] The annualized yield to maturity computed by doubling the semiannual yield. [Harvey] bonded Goods stored by customs until the import duties are paid or the goods are exported.
 See also: Yield, Investment, Securities, Market, Interest
  
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