{"id":347,"date":"2009-10-24T15:16:14","date_gmt":"2009-10-24T09:46:14","guid":{"rendered":"http:\/\/www.niftylivecharts.com\/blog\/?p=347"},"modified":"2009-10-24T15:16:14","modified_gmt":"2009-10-24T09:46:14","slug":"yield-advantage-and-curves","status":"publish","type":"post","link":"https:\/\/www.niftylivecharts.com\/blog\/yield-advantage-and-curves\/","title":{"rendered":"yield advantage and curves"},"content":{"rendered":"<p><strong>Yield Advantage <\/strong><br \/>\nAs between shares and convertible debentures of the same company, the yield on the debentures may be higher than the dividend on shares,\u00a0 one may therefore go in for the convertible debentures for the yield advantage.<\/p>\n<p><strong>Yield Curve <\/strong><br \/>\nit is a graph showing yield on the axis Y and period of maturity on the axis X, for fixed \u2013 income investments of the same kind, i.e., government bonds, debentures, or other loan instruments. These curves may be ascending, i.e., long \u2013 term securities yielding more than short \u2013 term securities or descending, i.e., short \u2013 term securities yielding more than long \u2013 term ones (in which case it is a negative yield curve), or flat, showing that both short \u2013 term and long \u2013 term yields are the same.<\/p>\n<p><strong>Yield Gap <\/strong><br \/>\nThe difference between the average annual yield on equity dividends and the average annual yield of long \u2013 term gilt \u2013 edged securities. Equities carry a greater risk, over a period of time they have always served as a hedge against inflation. With rising equity prices the dividend yield becomes lower,resulting\u00a0 in a negative yield gap.<\/p>\n<p><strong>Yield Spread <\/strong><br \/>\nIt is the difference between the DIVIDEND YIELD on shares and the CURRENT YIELD on bonds.<\/p>\n<p><strong>Yield to Maturity<\/strong><br \/>\nCalculation of the rate of return to an investor in a long \u2013 term bond if it is held till maturity. Several elements are taken into consideration in this calculation: the investment, the redemption value, the interest yield, the periodicity of interest payments, and the time to maturity. Also to be taken into account is the present value of the investment and the total returns in terms of the present value, i.e. the total returns have to be discounted against inflationary fall in value, and deduction of income tax on maturity.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Yield Advantage As between shares and convertible debentures of the same company, the yield on the debentures may be higher than the dividend on shares,\u00a0 one may therefore go in for the convertible debentures for the yield advantage. Yield Curve it is a graph showing yield on the axis Y and period of maturity on [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[1],"tags":[1373,1374,1375,1376,1377],"class_list":["post-347","post","type-post","status-publish","format-standard","category-general","tag-yiel-advantage","tag-yield-curves","tag-yield-gap","tag-yield-spread","tag-yield-to-maturity","entry"],"_links":{"self":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/347","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/comments?post=347"}],"version-history":[{"count":0,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/347\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/media?parent=347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/categories?post=347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/tags?post=347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}