Redemption yield

NickyW

Please is there anybody out there who can explain to me in really simple terms what the redemption yield of a gilt is?
Many thanks
Nicky

SandyHood

The Internal rate of return that the gilt will generate using the purchase cost, the annual (or bi-annual) interest payments and the face value all discounted using the market rate.


This is a longer reply to the same question
http://forums.aat.org.uk/showpost.php?p=142797&postcount=2