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What Do You Mean By Term 'loan Maturity' And 'yield'? |
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Answer» The date on which the principal AMOUNT of a loan becomes due and PAYABLE is known as 'Loan Maturity'. Yield is commonly referred as the dividend, interest or return the investor RECEIVES from a security like stock or bond, interest on fix deposit etc. For EXAMPLE, any INVESTMENT for $10,000 at interest rate of 4.25%, will give you a yield of $425. The date on which the principal amount of a loan becomes due and payable is known as 'Loan Maturity'. Yield is commonly referred as the dividend, interest or return the investor receives from a security like stock or bond, interest on fix deposit etc. For example, any investment for $10,000 at interest rate of 4.25%, will give you a yield of $425. |
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