YANKEE BONDS
Dollar-denominated bonds issued within the United States by foreign banks and companies.
YANKEE STOCK OFFERINGS
Offerings of stock by non-U.S. MNCs in the U.S. markets.
YEN
Japanese currency. Its symbol is ¥.
YIELD
Also called real return or real rate of return.
1. Effective rate of return, or real return. See INTERNAL RATE OF RETURN.
2. The income earned on an investment, usually expressed as a percentage of the market price.
3. The percentage return earned on a common stock or preferred stock in dividends. It is figured by dividing the total of dividends paid in the preceding 12 months by the current market price. For example, a stock with a current market value of $40 a share which has paid $2 in dividends in the preceding 12 months is said to return 5% ($2/$40). If an investor paid $20 for the stock five years earlier, the stock would be returning him/her 10% on his/her original investment.
4. In the case of bonds, the current yield or yield to maturity (YTM).
5. The money earned on a loan, which is determined by multiplying the annual percentage rate (APR) by the amount of the loan over a stated time period.
YIELD TO CALL
The yield of a bond, if it is held until the call date. This yield is valid only if the security is called prior to maturity. The calculation of yield to call is based on the coupon rate, length of time to the call date, and the market price. In general, bonds are callable over several years and normally are called at a small premium.
YIELD TO MATURITY
Also called effective yield, yield to maturity (YTM) is the real return to be received from interest income plus capital gain (or loss) assuming the bond is held to maturity. The YTM incorporates the stated rate of interest on the bond as well as any discount or premium that may have been generated when bought.
YUAN
China’s currency.
