Meaning YIELD TO AVERAGE LIFE: A yield calculation in which bonds are retired routinely during the life of the issue. Since the issuer buys its own bonds on the open market because of sinking fund requirements, if the bonds are trading below par, this action provides automatic price support for these bonds and they will usually trade on a yield to average life basis
More terms such as Yield to average life in Dictionary Y.
- Definition Yield Curve Strategies:
- Examples Investments that position a portfolio to capitalize on expected changes in the shape of the Treasury yield curve yield to average life definition.
- Definition Yield To Warrant Expiration:
- Examples Applies mainly to convertible securities. Effective yield of usable convertible bonds determined by the expiration date of the applicable warrants yield to average life explain.
- Definition Yield To Maturity:
- Examples of return paid on a bond, note, or other fixed income security if the investor buys and holds it to its maturity date. The calculation for YTM is based on the coupon rate, length of time to maturity yield to average life what is.
- Definition Yankee Market:
- Examples The foreign market in the United States yield to average life meaning.
- Definition Yield To Call:
- Examples of a bond or note if the investor buys and holds the security until the call date. This yield is valid only if the security is called prior to maturity. Generally bonds are callable over several yield to average life abbreviation.
