Yield
Yield is the annual return you receive from holding a stock, share or unit trust - it is
expressed as a percentage of its price.In the case of shares, the yield is calculated by
expressing the dividend as a percentage of the cost of the investment. To calculate a
yield on a share, take the dividend paid (this will be net of the basic rate of tax), add
back the tax to get the gross yield and then divide by the share price and
multiply by 100
Yield Curve
A graph depicting yield vis-a-vis maturity. If short-term rates are lower than long-term
rates, it is a positive yield curve, if short-term rates are higher, it is a negative or
inverted yield curve. If there is isn't much
difference, it is a flat yield curve.
Yield To Maturity (YTM)
The yield earned by a bond if held to maturity.