A measure of the annual return from an investment. The Effective yield is calculated by dividing the coupon interest rate by the amount invested expressed as a percentage of the par value. American Banker Glossary
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yield or return on a short-term investment after adjustment for the change in exchange rates over the period of concern. Bloomberg Financial Dictionary
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effective yield UK US noun [C]
► FINANCE the total amount earned on an investment, including money from investing the interest payments: »
If one allows for share buybacks, the effective yield on American equities is around 2.7%.
Financial and business terms. 2012.