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Home > QFINANCE Dictionary > Definition of annual percentage yield

Definition of

annual percentage yield

Finance

effective annual return on investment the effective or true annual rate of return on an investment, taking into account the effect of compounding. For example, an annual percentage rate of 6% compounded monthly translates into an annual percentage yield of 6.17%.

Related definitions of "annual percentage yield"

Definitions of ’annual percentage yield’ and meaning of ’annual percentage yield’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’annual percentage yield’ and other financial terms with our online QFINANCE Financial Dictionary.

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