Gross Redemption Yield (GRY)

The normal yield value quoted for a bond is the flat yield which is the fixed coupon divided by the current bond price as a percentage. The Gross Redemption Yield (GRY) takes into account not only the flat yield but also any capital gain received by holding the bond to maturity.

If for example a bond has a maturity value of £100 in 2 years time but is bought now for £95, there will be a capital gain of 5% over two years (approxiamtely 2.47% per annum) to add to the flat yield, if the bond is held to maturity. If the flat yield is 6% per annum then the Gross Redemption Yield is 8.47% per annum.

What to do if you need more help

If you need more help with your specific commercial loan, mortgage or insurance requirement please speak to a professional financial adviser.

We hope you found this information useful.

return to previous menu…

Sponsors Advertising

Copyright © Steve Gears Associates. All rights reserved. No portion of this site may be reproduced without written permission. All Trademarks are freely acknowledged.The information on this site is based on UK data unless otherwise indicated. Non-UK visitors should check with experts within their own legal jurisdiction before relying on information presented here.

Website Terms of Use |  Other Resources |  Site Map