Annual Percentage Yield (APY): The effective, or true, annual rate of return. The APY is the rate actually earned or paid in one year, taking into account the effect of compounding. The APY is calculated by taking one plus the periodic rate and raising it to the number of periods in a year. For example, a 1% per month rate has an APY of 12.68% (1.01^12 -1).

 

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Annual Percentage Yield (APY): Annual percentage yield is the amount you earn on an interest-bearing investment in a year, expressed as a percentage. For example, if you earn $60 on a $1,000 certificate of deposit (CD) be . . . View Full Definition

Annual Rate Of Return: There are many ways of calculating the annual rate of return. If the rate of return is calculated on a monthly basis, we sometimes multiply this by 12 to express an annual rate of return. Th . . . View Full Definition

Realized Compound Yield: Yield assuming that coupon payments are invested at the going market interest rate at the time of their receipt and held thus until the bond matures.

Pure Yield Pickup Swap: Moving to higher yield-bonds.