yield basis

yield basis definition - business

yield basis

A method of quoting a bond's price in terms of its yield rather than in terms of its dollar value. Because bonds are bought and sold on the basis of yield, yield is generally a more informative measure of value than a bond's dollar price. Treasury securities are usually auctioned on a yield basis.

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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