effective rate Definition

effective rate

Definition

The yield on a debt as calculated from the purchase price. A more accurate measure of the return on a bond investment than the simple coupon payment. Computed using both the capital gain from price appreciation and the bond's yield.

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effective rate is ...
... part of the Bonds subject.

effective rate appears in the definitions of these other terms on BusinessDictionary.com

effective interest rate, nominal rate of interest, internal rate of return (IRR)