Definition of Bond Yield

Bond Yield

Present value calculations determine the present value of a bond payment stream given a discount rate. The bond yield calculations iteratively search for the discount rate that makes the market price of a bond equal to its discounted present value. That discount rate is know as the bond yield.

You can calculate bond yields using the Fixed Income Securities mortgage/bond calculator.

This glossary supports the EconModel applications known as the Classic Economic Models. That collection includes 16 of the most important models from microeconomics and macroeconomics. Check out the 10-day free trial.