Financial Glossary what is redemption-yield


Redemption Yield

The return on a bond if it is held to its maturity date, reflecting not only the interest payments a bondholder will receive, but also the gain/loss made when it matures. Yield calculations on bonds aim to show the return as a percentage of either its nominal value or its current price. The three main types of yield calculation commonly used are nominal, current or running, and redemption yield.
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