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Yankee Bond - Foreign bonds issued in the US by foreign
banks and corporations in US dollar denominations.
Yankee CD - A CD issued in the US by a branch of a foreign bank.
Yield - The rate of return on an investment. The yield is usually
expressed as a percentage of the current price.
Yield Curve - Graph showing the term structure of interest rates by
plotting the yields of all bonds of the same quality with a different
range of maturities. The yield curve is studies to forecast the
direction of interest rates.
Yield Curve Flattening Warrants - An option with a conditional payout
based on the yield spread between two debt instruments on opposite ends
of the yield curve.
Yield Curve Option - An option on the spread between two rates at
different maturities on a yield curve that pays off on flattening or
steepening of the yield curve.
Yield Curve Strategy - A strategy used to capitalize on predicted
changes of the yield curve.
Yield Decrease Warrant - Interest rate warrant which increases in value
as long bond yields decline and, conversely, declines in value when
yields rise.
Yield Differential Warrant - Contract in which the payoff is a function
of a yield differential in two markets.
Yield Enhancement - Strategy used to increase the yield of a debt
instrument.
Yield to Maturity - An investment’s rate of return that accounts for the
monetary difference between a bond's acquisition cost and its maturity
proceeds, including interest earned from owning the bond. Can be used to
determine a bond’s rate of return if held to maturity date.
Yield to Warrant Call - Refers to the effective yield of usable
convertible bonds based on the earliest date when the warrants can be
called.
Yield to Warrant Expiration - The effective yield of usable convertible
bonds based on the expiration date of the warrants.
Yield to Worst - The yield to maturity under the least desirable bond
repayment pattern with the assumption that market yields are unchanged.
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