Net Yield

1. Profit (or loss) from an investment, after deducting out-of-pocket costs and reserves for losses.

2. Rate of return on a bond, taking into account the purchase price, the coupon rate, and number of years to maturity. Municipal bonds are quoted on a net yield basis. Also called Yield to Maturity.

The return on an investment after subtracting all expenses. See also Current Yield, Yield to Maturity.
Example: Equity paid for an investment is $10,000. Net Income is $1,000. Therefore, the investment generates a $1,000 net yield.

Table 36 Net Worth

Balance Sheet

Assets Liabilities

Land $10,000 Mortgage $75,000

Buildings 90,000 Net worth 25,000

________ ________

Total $100,000 Total $100,000