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.
This content can be found on the following page:
http://www.investorwords.com/cgi-bin/getword.cgi?id=1667&term=effective%20rate
email to a friend
print this definition
cite this definition
link to this page
Copy and paste this HTML in your website to link to this page
'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)
Related Research Articles from the InvestorGuide.com University
Municipal Bonds
Learn about the two types of bonds issued by municipal organizations: General Obligation bonds and Revenue bonds, and what the benefits of municipal bonds in general are.
Other Types of Bonds
Find out about bonds issued by mortgage associations, savings bonds, Brady bonds, as well as those issued by other government agencies, and what the advantages and disadvantages of each type are.
Advanced Bond Concepts
Learn about callable and non-callable bonds, zero-coupon bonds, secured and unsecured bonds, tax-deferred bonds, put provisions, and other advanced bond concepts.
|
