nominal yield

nominal yield definition - finance
The coupon rate of a bond. A bond with a 7 percent coupon has a 7 percent nominal yield. However, the nominal yield does not equal how much the bond will pay, which is determined by the current yield on the bond, which takes into consideration the current yield of a bond and its current price.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.