Glossary on Trade Financing Terms - Y

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Y

Yankee bond:

A US$ denominated bond issued on the United States capital market by a non-American borrower.

Français: Obligation américaine
Español: Bono yanqui

Yankee CD:

A Certificate of Deposit issued on the US capital market by a branch of a foreign bank.

Français: CD américain
Español: Certificado de depósito yanqui

Yen-Yankees:

Yen bonds issued on the US market.

Français: Américaines en yen
Español: Yenes yanquis

A term used to refer to the annual return (income) produced by an investment, expressed as a percentage. For investment in stock it is calculated from the distributed dividends, for bonds or other interest bearing securities it corresponds to the effective rate of interest paid.

(1) Current Yield: The ratio of the coupon (interest) to the market price of a security. It is expressed as a percentage and neither the maturity nor the number of interest payments made are taken in consideration.

(2) Direct Yield: The discounted yield based on the total life of the asset at simple interest.

(3) Effective Yield: This is calculated on an annual, bi-annual or quarterly compounded interest basis over the period of the actual investment.

(4) Yield to Maturity: The percentage rate of return paid on a bond, note or other fixed income security which is purchased and held up to its date of maturity. This is calculated on the basis of the coupon rate, the length of time to maturity and the bond’s market price. It is assumed that the coupon interest paid over the life of the bond will be reinvested at the same rate.

Français: Rendement
Español: Yield

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