Peeing in a trash can instead of walking 50 feet to the bathroom is not funny. Raiding you neighborâs cooler is not funny. Building an 8 foot tall bonfire is not funny. Asking if you can wear the park rangerâs hat is not funny. Guess whose job it is to tell them that they are not funny: the park ranger.
The main difference between yields and interest rates is that each term refers to different financial instruments. Yield commonly refers to the dividend, interest or return the investor receives from a security like a stock or bond, and is usually reported as an annual figure.
Nominal yield (coupon rate) The nominal yield (NY) is the coupon rate on the face of the bonds. For exam purposes, you can assume that the coupon rate will remain fixed for the life of a bond. If you have a 7-percent bond, the bond will pay $70 per year interest (7% Ã $1,000 par value). When a problem states that a security is a 7-percent bond, itâs giving the nominal yield.