The total yield on a bond when interest payments are reinvested. The effective yield is always higher than the basic yield because interest from the investment is itself earning interest, an effect known as compounding.
Related information about effective yield:
- Effective Yield Definition | Investopedia
The yield of a bond, assuming that you reinvest the coupon (interest payments) once you have received payment. Effective yield is the total yield an investor ...
- Effective Yield Definition, Example & Formula | InvestingAnswers
We explain the definition of Effective Yield, provide a clear example of the formula, and explain why it's an important concept in business, finance & investing.
- How to Calculate Effective Yield | eHow.com
How to Calculate Effective Yield. In the world of finance and investments, two types of yield are the periodic yield and the effective yield. The periodic yield is the ...
- Effective interest rate - Wikipedia, the free encyclopedia
For example, a bank may refer to the yield on a loan portfolio after expected losses as its effective yield and include income from other fees, meaning that the ...
- The Effective Yield Concept - National Bureau of Economic Research
To compute the effective yield thus requires all the information shown in the formula.' The contract rate, contract maturity, and amortization arrangement ...
- What is effective yield? definition and meaning
Definition of effective yield: The total yield on a bond when interest payments are reinvested. The effective yield is always higher than the basic yield because ...
- Effective Yield Calculator
About This Tool. The online Effective Yield Calculator is used to calculate the effective yield which is an annual rate of return associated with a periodic interest ...
- Effective yield - Financial Dictionary - The Free Dictionary
Effective yield. Yield or return on a short-term investment after adjustment for the change in exchange rates over the period of concern. Annual Percentage ...