AccountingDefinitions.net is a free online dictionary of accounting terms. We aim to provide a comperhensive list of terms that can be used as the starting blocks of any accounting theory.
Accounting definitions
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Yield gap
The yield gap in a market is found from finding the difference between the bond yield and the average dividend yield in a particular market. The term market in this incident can either be taken for the national or global market of shares and bonds. Continue reading
Yield spread
The yield spread is simply the difference between the income a bond produces and the income that would be produced from another risk free debt instrument. Continue reading
Yield to worst
Yield to worst is the yield that is produced from a bond before it reaches its worse level of returns in its lifespan. Continue reading
Year on Year (YoY)
Year on year comparison is conducted by a number of companies. This usually comprises of matching the financial figures of the previous year with the current one. Continue reading
Yield to call (YTC)
The yield to call or YTC for short is the measure of yield that is expected to be produced from a callable bond. The calculation is done in the same way as the yield to maturity calculation with the final cash flow being the call price. Continue reading
Yield to maturity (YTM)
Yield to maturity or YTM for short is the internal rate of return a holder of a bond would receive if a bond is purchased at the market price. It is some time also known as the redemption yield and is commonly used to evaluate bonds. Continue reading
Zero coupon bonds
A zero coupon bond unlike regular bonds do not pay interest over its life span. Instead these bonds are issued at a lower rate than their face value. At the end of the life of the bond the holder will receive the full face value of the bond. Continue reading
Zero sum game
A zero sum game is a game in which the players can only accumulate a profit from the other players loses. This means that the net profit of any player(s) can only equal the net losses of the other player(s). Continue reading
Zeros (zero dividends preference shares)
Zeros is a shorten term to relate to zero dividend preference shares. These share are just the same as any other preference share with one main difference, unlike ordinary preference shares they do not pay dividends. Continue reading
Altman Z-score
The Altman Z-score is a weighted measure of a company’s financial strength. The weighting is made up of several factors. The Altman Z-score gets its name from the mathematician that published the theory, Edward I Altman. Continue reading