Realized yield is the actual return earned during the holding period for an investment, and may include dividends, interest payments and other cash distributions. The term may be applied to a bond sold prior to its maturity date or a dividend-paying security. Generally speaking, the realized yield on bonds includes the coupon payments received during the holding period, plus or minus the change in the value of the original investment, calculated on an annual basis. Next Up Bond Yield Yield Term To Maturity Running Yield

Realized yield is the total return when a bond is sold prior to maturity. For example, a bond maturing in three years with a 3% coupon purchased at face value of $1,000 has a yield to maturity of 3%. If the bond is sold exactly one year after purchase at $960, the loss of principal is 4%. The coupon payment of 3% brings the realized yield to negative 1%. If the same bond is sold one year later at $1,020 for a 2% gain in principal, the realized yield is increased to 5% due to the 3% coupon payment.

Certificate of deposit investors who cash out prior to the maturity date are often charged a penalty. On a two-year CD, the typical penalty for early withdrawal is six months of interest. For example, say an investor who cashes out a two-year CD paying 1% after one year accrues $1,000 of interest. The penalty of six months equates to $500. After paying the penalty, the investor nets $500 over one year for a realized yield of 0.5%.

The calculation for realized yield also applies to exchange-traded funds (ETF) and other investment vehicles without maturity dates. For example, an investor who holds an ETF paying 4% interest for exactly two years and sells for a 2% gain has earned 4% per year. The gain in principal is amortized over the two-year holding period for a 1% gain per year, bringing the realized yield to 5% per year.

The realized compound yield is calculated by computing the compound rate of growth of invested funds, assuming that all coupon payments are reinvested.

Security's guaranteed yield suggests that coupon installments are reinvested at the guaranteed yield (i.e., YTM) and the security is sold or reclaimed at its expected worth. The realized yield is the actual, after-the-fact return the investor gets. Security's calculated yield is the guaranteed yield.

Return is the financial benefit or misfortune on a venture and it is normally communicated as the adjustment in dollar value of an investment over the long run. Yield is the income returned on investment, for example, the interest gotten from holding the security.

The realized compound yield is characterized as the return that bondholders get in the event that they reinvest all coupons at some given reinvestment rates.

Realized yield is the actual return acquired during the holding time frame for an investment. It is usually made up of profits, interest payments, and other money dispersions. The expression "realized yield" can be applied to security sold before its development date or profit paying security.

Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until it matures. ... In other words, it is the internal rate of return (IRR) of an investment in a bond if the investor holds the bond until maturity, with all payments made as scheduled and reinvested at the same rate.Feb 24, 2020

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… The predictive performance of the different models, however, is assessed in terms of realized volatility, which is more relevant from the viewpoint of financial economics … They also consider the HAR model for the logarithm of realized variance, yielding similar results …

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… The predictive performance of the different models, however, is assessed in terms of realized volatility, which is more relevant from the viewpoint of financial economics … They also consider the HAR model for the logarithm of realized variance, yielding similar results …

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… The predictive performance of the different models, however, is assessed in terms of realized volatility, which is more relevant from the viewpoint of financial economics … They also consider the HAR model for the logarithm of realized variance, yielding similar results …

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… The predictive performance of the different models, however, is assessed in terms of realized volatility, which is more relevant from the viewpoint of financial economics … They also consider the HAR model for the logarithm of realized variance, yielding similar results …

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… The predictive performance of the different models, however, is assessed in terms of realized volatility, which is more relevant from the viewpoint of financial economics … They also consider the HAR model for the logarithm of realized variance, yielding similar results …

www.tandfonline.com [PDF]

… The predictive performance of the different models, however, is assessed in terms of realized volatility, which is more relevant from the viewpoint of financial economics … They also consider the HAR model for the logarithm of realized variance, yielding similar results …

onlinelibrary.wiley.com [PDF]

… The predictive performance of the different models, however, is assessed in terms of realized volatility, which is more relevant from the viewpoint of financial economics … They also consider the HAR model for the logarithm of realized variance, yielding similar results …

www.sciencedirect.com [PDF]

… The predictive performance of the different models, however, is assessed in terms of realized volatility, which is more relevant from the viewpoint of financial economics … They also consider the HAR model for the logarithm of realized variance, yielding similar results …

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The realized yield of a high-yield bond fund is likely to be lower than its yield to maturity because of defaults.

Likely means that it is probable or possible.

The real yields are different because they are adjusted for inflation.

An investor may purchase a high-yield bond fund because they have higher interest rates than other bonds, but also carry more risk.

If there was default risk associated with it, then an investor might not want to purchase one due to loss of principal and/or interest payments.

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