DEFINITION of 'Required Yield'
The return a bond must offer in order to be a worthwhile investment. Required yield is set by the market and sets the precedent for how current bond issues will be priced.
BREAKING DOWN 'Required Yield'
For example, if the required yield increases to a rate that is greater than that of the bond's coupon, the bond will be priced at a discount. In this way, the investor acquiring the bond will be compensated for the lower coupon rate in the form of accrued interest. If the bond is not priced at a discount, investors will not purchase the issue because its yield will be lower than that of the market. The opposite occurs when the required yield decreases to a rate that is less than that of the bond's coupon. In this case, investor demand for the higher coupon will drive the bond's price up, making the bond's yield equivalent to market yield.

Bond Yield
The amount of return an investor will realize on a bond. Several ... 
Coupon
The annual interest rate paid on a bond, expressed as a percentage ... 
Coupon Rate
The yield paid by a fixed income security. A fixed income security's ... 
Bond
A debt investment in which an investor loans money to an entity ... 
Coupon Bond
A debt obligation with coupons attached that represent semiannual ... 
Discount Bond
A bond that is issued for less than its par (or face) value, ...

Markets
How Does A Bondâ€™s Coupon Interest Rate Affect Its Price?
All bonds come with a coupon interest rate, which is the fixed annual interest a bond pays. 
Investing
Explaining the Coupon Rate
Coupon rate is the stated interest rate on a fixed income security. 
Markets
Understanding the Different Types of Bond Yields
Any investor, private or institutional, should be aware of the diverse types and calculations of bond yields before an actual investment. 
Markets
Comparing Yield To Maturity And The Coupon Rate
Investors base investing decisions and strategies on yield to maturity more so than coupon rates. 
Investing
What is a Premium Bond?
A premium bond is one that trades above its face or nominal amount. 
Managing Wealth
How Bond Prices and Yields Work
Understanding bond prices and yields can help any investor in any market. 
Markets
Simple Math for FixedCoupon Corporate Bonds
A guide to help to understand the simple math behind fixedcoupon corporate bonds. 
Markets
Using Excel PV Function to compute Bonds PV
To determine the value of a bond today  for a fixed principal (par value) to be repaid in the future at any predetermined time  we can use an Excel spreadsheet. 
Managing Wealth
Find The Right Bond At The Right Time
Find out which bonds you should be investing in and when you should be buying them. 
Markets
Understanding Interest Rates, Inflation And Bonds
Get to know the relationships that determine a bond's price and its payout.

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