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Glossary Term: BOND YIELD

Definition(s) for BOND YIELD:


1. ) Stated simply, the yield on a bond is the interest you actually earn on your investment. If an individual purchases a new issue, the yield is the same as the interest rate, but if he/she buys on the secondary market, the yield may be higher or lower. When the yield of a bond goes up, its price has fallen. Conversely, if a bond's yield falls, its market value has risen.



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