Effective Yield

Effective Yield
Effective Yield is a measure of the actual return earned on an investment, taking into account the effects of compounding interest.
Gross Redemption Yield
The gross redemption yield, also known as the effective yield or yield to maturity (YTM), represents the internal rate of return of a bond bought at a specified price and held until its maturity, excluding any taxes payable on the interest and the capital repayments.

Accounting Terms Lexicon

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