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Yield - Rate of return on an investment, expressed as a percentage of the current price. (See "Current Yield," "Dividend Yield," "Nominal Yield," "Yield to Maturity")
Yield Curve - Graph showing the term structure of interest rates by plotting the yields of all bonds of the same quality with a range of maturities. The resulting curve is considered positive if short-term rates are lower than long-term rates, which is normally the case. The curve is considered negative, or inverted, if short-term rates are higher. Analysts study yield curves to predict the direction of interest rates.
Yield to Maturity - Rate of return on an investment that accounts for the cash difference between a bond's acquisition cost and its maturity proceeds, as well as interest received from owning the bond. The concept is used to determine an investor's rate of return if a bond is held to its maturity date.
Zero Coupon Bond - Bond that makes no periodic interest payments but instead is sold at a deep discount from its face value.
Zero-Minus Tick - Sale made at a price equal to the price of the last sale but lower than the last different price.
Zero-Plus Tick - Sale made at a price equal to the price of the last sale but higher than the last different price. |