Yield The annual
The yield gap is the difference between the yield on a reputable index of equities and the yield on bonds, as measured by a standard gilt-edged government bond. This is usually positive since equities are riskier than bonds (and therefore higher-yielding). On occasions, however, the yield on bonds is higher than that on equities, and there is then said to be a reverse yield gap. (See also inverse yield curve and redemption yield.) Yield curve The shape of a graph plotted to show the structure of interest rates. Since the rate for long-term financial instruments 女士脫髮 is higher than for short-term ones, the curve usually slopes upwards from the bottom left-hand corner to the top right-hand corner (assuming that rates are on the vertical axis and maturity is on the horizontal axis). However, in circumstances where the market expects that a currently high rate of inflation will soon fall rapidly, the curve can slope the other way. (See inverse yield curve.) Yield to maturity The same as redemption yield, the yield that takes into account the premium or discount in the purchase price of a fixed-interest security. Zakat The practice among Muslims of making an annual donation to charity or to the community at large. The word zakat literally means “purification” and “growth”. Donors are allowed to deduct expenses and what they owe in taxes. They may also set aside the equivalent of 85g of gold; on the remaining balance they are obliged to pay a levy equal to at least 2.5% of their wealth. Zero-coupon bond A security bought and sold in the secondary market at a deep discount to its face value because it carries no coupon; that is, it pays no interest to the bondholder. Purchasers get their profit from the gradual increase in the market price as the price closes the gap with the bond’s face value, that is, the amount repayable when it reaches maturity.
