actual yield

Examples of actual yield in the following topics:

• Calculating Theoretical and Percent Yield

  • It is the ratio between the actual yield and the theoretical yield.
  • However, the amount of product actually produced by the reaction will usually be less than the theoretical yield and is referred to as the actual yield.
  • Then the theoretical yield of the product can be determined and, finally, compared to the actual yield.
  • If 18.0 grams were actually produced, the percent yield could be calculated:
  • Calculate the percent yield of a reaction, distinguishing from theoretical and actual yield.

• Yield Management Systems

  • Yield management is a large revenue generator for several major industries.
  • Firms that engage in yield management usually use computer yield management systems to do so.
  • After a year or two of using yield management, many of them are surprised to discover that they have actually lowered prices for the majority of their opera seats or hotel rooms or other products.
  • By doing this, they have actually increased quantity demanded by selectively introducing many more price points, as they learn about and react to the diversity of interests and purchase drivers of their customers
  • Your ticket may cost more or less than mine due to yield management.

• Calculating the Yield of a Single-Period Investment

  • The whole point of making an investment is to get a yield.
  • However, since interest compounds, nominal APR is not a very accurate measure of the amount of interest you actually accrue.
  • To find the effective APR, the actual amount of interest you would accrue per year, we use the Effective Annual Rate, or EAR.
  • The EAR is a form of the Annual Percentage Yield (APY).
  • The logic behind calculating APY is the same as that used when calculating EAR: we want to know how much you actually accrue in interest per year.

• Other Features

  • The yield is the rate of return received from investing in the bond.
  • It usually refers either to the current yield, which is simply the annual interest payment divided by the current market price of the bond (often the clean price), or to the yield to maturity or redemption yield.
  • "Dirty" refers to the actual price to be paid; while "clean" includes an adjustment for accrued interest.
  • Yield on a puttable bond is lower than the yield on a straight bond.
  • Describe the effect a bond's market price has on its yield

• Value of a Low Dividend

  • Taxes on capital gains are deferred into the future when the stock is actually sold, as opposed to immediately like cash dividends.
  • However, under dividend irrelevance theory, the actual value of a dividend is inconsequential to investors.
  • If a stock has a low dividend yield, this implies that the stock's market price is considerably higher than the dividend payments a shareholder gets from owning the stock.
  • A history of low or falling yields may indicate that the firm's cash situation is not stable.
  • Conversely, a low dividend yield can be considered evidence that the firm is experiencing rapid growth or that future dividends might be higher.

• Yield to Maturity

  • The formula for yield to maturity:
  • Yield to put: same as yield to call, but when the bond holder has the option to sell the bond back to the issuer at a fixed price on specified date.
  • Yield to worst: when a bond is callable, puttable, exchangeable, or has other features, the yield to worst is the lowest yield of yield to maturity, yield to call, yield to put, and others.
  • The current yield is 5.56% ((5/90)*100).
  • Classify a bond based on its market value and Yield to Maturity

• Non-Thermal Emission

  • This yields a negative absorption coefficient, so the optical depth decreases and becomes negative as one passes through a region with inverted populations and the intensity of the radiation actually increases exponentially as the magnitude of the optical depth increases.

• The Yield Curve

  • Based on the shape of the yield curve, we have normal yield curves, steep yield curves, flat or humped yield curves, and inverted yield curves .
  • The yield curve is normal meaning that yields rise as maturity lengthens (i.e., the slope of the yield curve is positive).
  • Sometimes, treasury bond yield averages higher than that of treasury bills (e.g. 20-year Treasury yield rises higher than the three-month Treasury yield).
  • An inverted yield curve occurs when long-term yields fall below short-term yields.
  • Because of the term premium, long-term bond yields tend to be higher than short-term yields, and the yield curve slopes upward.

• Defining Current Liabilities

  • In financial accounting, a liability is defined as an obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of future economic benefits.
  • A duty or responsibility to others that entails settlement by future transfer or use of assets, provision of services, or other transaction yielding an economic benefit, at a specified date, on occurrence of a specified event, or on demand.
  • Another important point is that current liabilities are many times not "current" and are actually past due.

• The "Bond Yield Plus Risk Premium" Approach

  • A company's long-term debt has a yield to maturity of 6%.
  • Simply put, the yield on a bond is the rate of return received from the investment.
  • Treasury Bond yield)
  • The dividend yield plus projected earnings growth, minus the 10-year Treasury yield
  • Describe the process for the bond yield plus risk premium approach