constant yield method

Definition

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.

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

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

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

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constant returns to scale construction bond