TRADING GLOSSARY
Bond yield
Bond yield measures the return implied by a bond’s price and payments. Current yield compares annual coupon income with market price, while yield to maturity also accounts for repayment at maturity. For fixed-rate bonds, prices and yields generally move in opposite directions.
EXAMPLE
In a hypothetical example, a bond paying $40 annually trades at $800. Its current yield is 5%, excluding repayment gains or losses.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure