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What is book yield?

Updated: 4/28/2022
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11y ago

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The "book yield" is a measure of a bond's recurring realized investment income that combines both the bond's coupon return plus its amortization. It is defined as the bond's Internal Rate of Return (IRR) of all its cash flows. The following example illustrates the concept of book yield. A $100 par bond having a 5% coupon to be paid annually at year end is purchased for a $95 purchase price at the beginning of the year. The bond is set to mature in three years. In this example, the book yield will be greater than the 5% coupon on the discount bond as the investor will receive both the 5% coupon and the difference between purchase price and maturity value (an additional $5). The book yield at purchase will be 6.90%, which is the internal rate of return or IRR of the cash flows. The $5 discount is amortized into income over the life of the bond and the book value of the bond is increased until it reaches its par value of $100 at maturity.

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Q: What is book yield?
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Related questions

How do you calculate book yield?

Book yield, also called yield to maturity can be calculated by the time period rooted of the face value over the present value minus one. The book yield is a percentage that shows how much the bond gains a year until its maturity.


How do you calculate yield?

Book yield, also called yield to maturity can be calculated by the time period rooted of the face value over the present value minus one. The book yield is a percentage that shows how much the bond gains a year until its maturity.


What is the difference between broker yield and book yield?

Dynamic book yield analysis The present invention relates to systems, methods, data structures and user interfaces for generating and presenting information as to how and why the book yield of an investment portfolio changed over a time interval. Dynamic book yield analysis is particularly useful for bond portfolio analysis and management. Transactions and events that occur in a financial market during a pre-specified time period and relating to a portfolio of assets are identified by a computer server. Specifically, the book yields and book values for these transactions and events are accessed from the portfolio accounting system and the data for each transaction/event are categorized according to transaction/event type (though net cash equivalents are first separated out into their own category). The categorized information is then stored in a data structure residing on the system. Book yields and book values are identified for the portfolio of assets at the beginning and end of the pre-specified time period and book yields and book values are calculated for each category of transactions/events previously identified. The effect of each category of transactions/events on the book yield of the portfolio of assets is then quantified. The results of the analysis can then be displayed to investors and portfolio managers in dynamic book yield attribution reports generated by a reporting system. The reports can be used by these investors and portfolio managers to make and execute additional investment decisions based, at least in part, on the quantified impacts of each category of transactions/events on the portfolio book yield.


Where can one buy the book 'Eat To Live'?

The book Eat to Live is available currently from many retailers. Checking popular book retailers depending on your local geographic location should yield respectable results. If local retailers are not an option online retailers should yield respectable results.


HOW TO calculate percentage yield?

actual yield multiply by 100 = % yield theoretical yield


What is the percent yield of 122 grams of product?

If this is the actual yield, real amount produced, then you need the theoretical yield to find the percent yield. % yield = (actual yield / theoretical yield) x 100


How is percent yield caculated?

Percent yield = (actual yield/expected yield) x 100


How do you calculate percentage yield?

# Determine the limiting reagent; # Calculate the expected yield if the reaction goes to 100% completion. # Divide the actual yield by the expected yield and multiply by 100. The result is percentage yield.


When gathering information to support your analysis what is it that your search will allow you to identify the areas of the book that will be most likely to yield results?

limiting


What does ne cede malis mean in English?

Yield not to misfortune. The quote comes from Virgil's Aeneid Book VI: "Tu ne cede malis, sed contra audientior" (Do not yield to misfortune, but proceed more boldly against it).


How do you spell yield?

Yield.


Is actual yield greater or less than theoretical yield?

The actual yield is less than the theoretical yield.