A bank designated by the issuer as the custodian of funds and official representative of bondholders. Unit investment trust. Investment fund created with a fixed portfolio of investments that never changes over the life of the trust. As investments within the trust are paid off, they provide a steady, periodic flow of income to investors. The annual percentage rate of return earned on a security.
Yield is a function of a security's purchase price and coupon interest rate.
A line tracing relative yields on a type of security over a spectrum of maturities ranging from three months to 30 years. Yield to call. A yield on a security calculated by assuming that interest payments will be paid until the call date, when the security will be redeemed at the call price. Yield to maturity. A yield based on the assumption that the security will remain outstanding to maturity.