FIIG - The Fixed Income Experts

What Is A Yield?


A yield is the measure of the return of a bond and allows you to compare the returns of different types of bonds. The most common types of yield are purchase yield and running yield.

The purchase yield, or yield to maturity, measures the return an investor will receive if they buy and hold the bond to maturity. It takes into account the purchase price of a bond, estimated interest payments over the lift of the bond and the return of face value at maturity.

The running yield measures the return an investor will receive as income from coupons. It takes into account the estimated interest payments in relation to the purchase price.

More videos

"Corporate bonds are a great defensive asset class and far more interesting than having money sitting in the bank."

- Warwick Blowes

View the case study

Copyright © 2020 FIIG Securities Limited | ABN 68 085 661 632 | AFSL No 224659 | Financial Services GuideSitemap | About us
FIIG provides general financial product advice only.  For a copy of our disclaimer please refer to
Please be aware that Corporate Bonds have a greater risk of loss of some or all of your capital when compared to bank deposits.