The rate of return for a bond that assumes the bond will be held to maturity or the first call date if the bond is callable at par, and is currently trading at a premium to par. Also called Yield to Worst.

The annual return expressed as the face interest rate divided by the amount invested used when a mortgage or other debt instrument is bought at a discount or premium.

Yield or return on a short-term investment after adjustment for the change in exchange rates over the period of concern.

The Internal Rate of Return of a fixed-income instrument, such as bonds.

The way total return is usually expressed when a certificate of deposit (CD) is held until maturity, reflecting the effect of compounding interest during the holding period.

A hypothetical figure that estimates what the yield would be if the money market investor continued to reinvest dividends at the current 7-day yield for one year.

The performance yield of a money market fund or subaccount is based upon the income earned by the fund/subaccount over a seven-day period and then annualized. When the Effective Yield is calculated, the income earned by the investment is assumed to be reinvested in subaccount units and thus compounded in the course of a 52-week period.

The annual return on an investment that is calculated by dividing the coupon interest rate by the amount invested expressed as a percent of par.

Return on investment after adjusting for factors such as inflation, brokerage fees, or management/administration fees. Equity The ownership interest in any tangible asset including a company (in the form of common or preferred shares); mutual funds (in the form of units); and real estate, precious metals, artwork, etc.

See effective rate of return.

An effective yield is a bond's yield when interest payments have been reinvested. It is a compounded yield and the net interest rate an investor receives (or a borrower pays) after the premium of a cap or floor is added to or subtracted from the contractual rate of interest.

The rate of return realized by an investor who buys a security and subsequently sells it. It reflects coupon, interest on interest, principal payments and capital gains or losses in comparison to the original purchase price.