Financial Derivative Terms - Y
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
- Yield
- The return earned on a financial asset, normally expressed in terms of an annual percentage rate of interest.
- Yield BPV
- Change in yield assuming the bond price (100 par) changes by 0.01
- Yield Curve
- A graphical representation at a selected point in time that plots interest rate returns of similar securities of equal credit risk with different maturity dates.
- Yield Curve Swap
- A swap in which the two interest streams reflect different points on the yield curve. For example, one side could pay the five year constant maturity treasury rate versus the two year constant maturity rate. The swap can be on either a fixed or a floating basis. This has been used by many investors who have a point of view on the shape of the yield curve or debt managers that want to hedge a structured note issue.
- Yield to Maturity
- The single annual percentage rate of a long-term security, for example a bond, which is a single discount rate applied to all future interest and principal payments to obtain a net present value equal to the purchase price of the security.
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