Page 181 - PRIAA Glossary
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YIELD
The rate of return on an investment, normally expressed as an annual percentage rate.
YIELD CURVE
The graphical representation of the term structure of interest rates vs. time in a particular market.
YIELD CURVE RISK
The risk of loss due to adverse shifts in the position or shape of the yield curve.
YIELD CURVE SWAP
A swap in which two interest rate streams are exchanged, reflecting different points on the yield curve. See also “constant maturity swap (CMS)”.
YIELD TO MATURITY
The amount of interest on an annual compound basis, which a bond would pay if held until redemption or the maturity date. Also, the interest rate that, if used to discount all cash flows, would compute the current price. See also “yield”.
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