Effective Yield

What Does Effective Yield Mean?
The yield of a bond, assuming that you reinvest the coupon (interest payments) once you have received payment.

Investopedia explains Effective Yield
Reinvesting the coupon will produce a higher yield because interest is earned on the interest payments.

Related Terms

Bond
Compounding
Coupon
Current Yield
Forward Dividend Yield
Interest Rate
Yield
Yield Burning
More Related Terms

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