In financial economics, the yield of a financial instrument/security (finance), usually a debt instrument, or other investment is the rate of return the holder earns on that instrument. Financial economics is the branch of economics concerned with the workings of financial markets, such as the stock market, and the financing of companies. ... Financial instruments package financial capital in readily tradeable forms - they do not exist outside the context of the financial markets. ... Security is a type of transferable interest representing financial value. ... Debt is that which is owed. ... Investment or investing is a term with several closely-related meanings in finance and economics, related to saving or deferring consumption. ... This article or section is in need of attention from an expert on the subject. ...
The absolute yield levels vary mainly with expectations of inflation. How yields compare between financial instruments tends to depend mainly on the credit worthiness of the lender, and the maturity of the instrument. The least risky instruments, such as government bonds, virtually always yield less than more risky corporate bonds. The relationship between yields and the maturity of instruments of similar credit worthiness, is described by the yield curve. Long dated instruments typically have a higher yield than short dated instruments. A government bond is a bond issued by a national government denominated in the countrys own currency. ... A Corporate bond is a bond issued by a corporation, as the name suggests. ... // The Yield Curve & The Term Structure of Interest Rates The US dollar yield curve as of 9 February 2005. ...
The yield of a debt instrument is generally linked to default probability of the issuer. The more the default risk, the higher the yield would be in most of the cases since issuers need to offer investors some compensation for the risk. Default is the name of a number of quite different concepts. ...
In bond markets, US Treasury bond yields are the benchmark debt instruments because they are backed by the US Government and the risk of default is almost nil. All the other debt instruments' yields are then linked to their default risk.
Inflation is linked to the yield in the sense that fears of high inflation in the future would mean that investors would ask for high yield today.
In finance and economics, the yield curve or the term structure of interest rates is the relationship between the cost of borrowing money and the amount of time the money is being borrowed for.
This theory suggests that the yield on a long-term instrument is equal to the geometric mean of the yield on a series of short-term instruments.
Yield curves are usually upward sloping and accelerating; the longer the maturity, the higher the yield.
In finance, yield is a measure of return on a security.
Yield is a condition in steel and other metals under tensile stress where it becomes plastic, deformation is large, and will ultimately break.
In the context of nuclear weapons, the yield of a weapon is the amount of energy discharged when the weapon explodes, commonly expressed in tons of trinitrotoluene (TNT) needed to produce the same energy.
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