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) between January 1 and December 31, your APY is 6%. When the APY is the same as the interest rate that is being paid on an investment, you are earning simple interest. But when the APY is higher than the interest rate, the interest is being compounded, which means you are earning interest on your accumulating interest.

 

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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.