constant yield method


Criteria used for tax purposes to calculate the annual income tax effects of a zero-coupon bond or other zero-coupon instruments. The constant yield method is explained by IRS Publication 1212, which describes how to find the income tax values, despite the fact that zero-coupon instruments do not have any coupon payments.

Use this term in a sentence

We used the constant yield method and I was very happy with it and decided that I wanted to change it up a bit.

​ Was this Helpful? YES  NO 4 people found this helpful.

You should try and make the best use of the constant yield method as you can to get even greater profits for you.

​ Was this Helpful? YES  NO 8 people found this helpful.

The constant yield method was useful to us for computing our taxes as the zero coupon bonds had complicated our return.

​ Was this Helpful? YES  NO 10 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
constant returns to scale construction bond