nominal yield

nominal yield definition - business

nominal yield

For a fixed-income security, the dollar amount of annual interest or dividends divided by the par value of the security. For example, a $1,000 par value bond that pays interest of $60 annually offers a nominal yield of $60/$1,000 , or 6%.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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