redemption yield

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Related to redemption yields: YTM

redemption yield

n
(Stock Exchange) stock exchange the yield produced by a redeemable gilt-edged security taking into account the annual interest it pays and an annualized amount to account for any profit or loss when it is redeemed
References in periodicals archive ?
With gross redemption yields (the value of both income payments plus capital loss/gain if a bond is held to maturity) at historic lows, maintaining income streams from them in the current environment often comes at a price.
With average redemption yields on gilts currently running at around 4pc, it is easy to see why companies who have realigned in this way might not be able to pay sustainable yearly bonus rates in excess of 4pcper annum,less expenses -which we might assume to be 2pcpa.
He says many potential traders in bonds are conscious that "mistakes in the calculation of yields could be very costly and at this stage the suspicion is that players are not comfortable with the workings of coupons, running and redemption yields and general compound interest functions such as annuities.