The yield of a bond, assuming that you reinvest the coupon (interest payments) once you have received payment.
Investopedia Says:
Reinvesting the coupon will produce a higher yield because interest is earned on the interest payments.
Related Links:
Learn the natural log and exponential functions used to calculate this value. Continuously Compound Interest
Investing in bonds - What are they, and do they belong in your portfolio? Bond Basics Tutorial
Learn the complex concepts and calculations for trading bonds including bond pricing, yield, term structure of interest rates and duration. Advanced Bond Concepts
They may not be sexy, but bonds do have a place in every balanced portfolio. Find out why. Advantages Of Bonds
