Browse Investing

Yield Measures and Redemption Yields

Bond yield terms for current yield, coupon yield, redemption yield, yield to maturity, yield to call, and yield to worst.

Yield measures and redemption yields are fixed-income return conventions that answer different questions about coupon income, annualized return, redemption timing, and call or maturity assumptions.

Use this branch when a bond screen, trade ticket, or factsheet gives a yield number and the reader needs to know what that number assumes.

What This Branch Covers

AreaUse it for
Core Bond Yield MeasuresBond yield, current yield, coupon yield, nominal yield, and bond-equivalent yield.
Redemption, Call, and Worst YieldsRedemption yield, yield to maturity, yield to call, yield to average life, and yield to worst.
Earning Asset YieldYield on interest-earning assets in bank and fixed-income spread analysis.

Quick Comparison

Yield labelMain question
Current yieldHow much annual coupon income relative to current price?
Yield to maturityWhat annualized return is implied if held to final maturity under stated assumptions?
Yield to callWhat annualized return is implied if the bond is called on a call date?
Yield to worstWhat is the lowest yield among specified redemption scenarios?

Common Mistakes

  • Comparing current yield with yield to maturity.
  • Ignoring call schedules and sinking-fund assumptions.
  • Treating a quoted yield as guaranteed realized return.
  • Forgetting that fees, taxes, reinvestment rates, credit events, and sale price can change actual results.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.

Bond Yields

Fixed-income terms for bond equivalent yield, bond yield, coupon yield, current yield, and nominal yield.

Earning Asset Yield

Fixed-income term for yield on earning assets and its role in financial institution spread analysis.

Redemption Yields

Fixed-income terms for redemption yield, yield to average life, yield to call, yield to maturity, and yield to worst.

Revised on Sunday, June 21, 2026