Yankee bonds:

Foreign bonds denominated in US$ issued in the United States by foreign banks and corporations. Likewise for example, bonds issued by originators with roots in and by Canadian firms in Europe are called Euro-Canadian bonds.

Yield:

The return on an investment, expressed as a percentage.

Yield Curve:

A graph showing, for securities, that all expose the investor to the came credit risk, the relationship at a given point in time between yield and current maturity. Yield curves are typically drawn using yields on governments of various maturities.

Yield Spread:

The difference, generally in yield to maturity, between two bonds. The histories of such comparisons are often examined as a means of deciding on the ratio of income produced by an investment relative to its purchase price or current market value, expressed as a percentage.

Yield (Weighted-Average Portfolio):

The weighted average of a yield of all the bonds in a portfolio.

YMPE (Year's Maximum Pensionable Earnings):

The YMPE is used in determining maximum benefits and contributions to the Canada Pension Plan.

The YMPE for 1995 was $34,900.

The YMPE for 1996 was $35,400

Zero Coupon Bonds:

A bond that pays no interest and is initially sold at a discount (See Strip Bonds)

Zero Balance Account or Impress Account:

A checking account in which zero balance is maintained by transfers of funds from a secondary (impress) account to a master account.

Zero-Sum Game:

A type of game when one player can gain only at the expense of the another player.

This Glossary of financial terms was created by Fiscal Agents Financial Information Services, Research Department. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, mechanical, electronic, photocopying, recording, or otherwise, without the prior written permission of Fiscal Agents. Copyright Fiscal Agents © 2000. All Worldwide Rights Reserved. Click to contact Glossary editor or see the permissions page.