- Realized Yield
- The actual amount of return earned on a security investment over a period of time. This period of time is typically the holding period which may differ from the expected yield at maturity. The realized yield also includes the returns that have been earned from reinvested interest, dividends and other cash distributions.
The realized yield tends to differ from the yield at maturity in scenarios where the holding period is less than that of the maturity date. In other words, the security is settled or sold prior to the maturity date given at the time of purchase.
For example, suppose an investor purchases a 10-year bond for $1,000 that issues a 5% annual coupon. Furthermore, if the investor sells the bond for $1,000 at the end of the first year (and after receiving the first coupon payment), her realized yield would only include the $50 coupon payment.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
realized yield — The holding period return actually generated from an investment in a bond. Bloomberg Financial Dictionary … Financial and business terms
realized yield — The total return obtained on a security, including that from the investment of any interest paid … Big dictionary of business and management
Realized compound yield — Yield assuming that coupon payments are invested at the going market interest rate at the time of their receipt and rolled over until the bond matures. The New York Times Financial Glossary … Financial and business terms
realized compound yield — yield assuming that coupon payments are invested at the going market interest rate at the time of their receipt and held thus until the bond matures. Bloomberg Financial Dictionary … Financial and business terms
holding-period yield — ( HPY) The annual rate of return actually realized on an investment in a bond. Bloomberg Financial Dictionary … Financial and business terms
holding period yield — ( HPY) The annual rate of return actually realized on an investment in a bond. Bloomberg Financial Dictionary … Financial and business terms
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