The actual return obtainable from a redeemable fixed interest investment allowing for both the remaining interest payments and the difference between the purchase price and the redemption or maturity value.

The total return from a security, such as, a bond, if it is held to its maturity date. It reflects both the income and capital gain/loss that it will make when it matures.

The estimated total long-term return of income and capital on fixed interest investments like corporate bonds or gilts.

The rate of interest at which all future payments (coupons and redemption) on a bond are discounted so that their total equals the current price of the bond (inversely related to price).

Gives a total return on the investment, taking into account the fact that whilst earning interest a capital gain/loss may be made by owning the bond to completion.

The overall return for an investor in a fixed interest bond who holds the bond to maturity. Takes account of capital returns as well as income.

Most government bonds have a redemption date at which buyers will receive repayment at £100 per £100 nominal of bonds initially purchased. If the bonds were bought for less than £100 then the return will include regular interest payments and a guaranteed capital gain. Together these two elements of return make up the redemption yield. The redemption yield on gilts is often used to provide a figure for the fundamental, risk-free, interest rate on money for a particular period. Current redemption yields can be found in the Companies and Markets section of the Financial Times, under the heading "UK Gilts Prices".

One of the most valuable measures of aÂ fixed interest security. The redemption yield measures the annualised return taking into account any income or capital gain or loss on the underlyingÂ securities if held to redemption.

An estimate of the total long term returns, including income and capital, on fixed income investments like corporate bonds and gilts.

A dividend or interest rate figure of a bond that takes into account its capital value if held to maturity.

The IRR a buyer would receive by purchasing a bond at the current market price.... more on Redemption yield

The total annualised return on owning a fixed interest security, made up of income plus any gain or minus any loss to redemption.

This figure generally refers to gilts, but it can be calculated for any type of bond. Strictly speaking, it represents the internal rate of return on a bond, bought at a specified price and held until maturity. Basically, this means that its the interest rate that you are getting if you buy a bond at the current price and hold it until it redeems in however many years' time. The redemption yield on gilts is often used to provide a figure for the fundamental, risk-free, interest rate on money for a particular period. Current redemption yields can be found in the Companies and Markets section of the Financial Times, under the heading "UK Gilts Prices".

The Redemption Yield shows what the total return on a bond would be if held to its maturity date. It reflects not only the interest payments a bondholder will receive, but also the gain/loss he will make when it matures.