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The "yield" quoted for government bonds is always Yield to Maturity - never current yield. For corporate bonds (which you didn't ask about) - other measures of yield can be quoted, such as Yield To Worst for callable bonds, meaning what's the worst possible yield I can get if I hold the bond until it matures or is called (whichever comes first).


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To answer the TL:DR, you could say that the yield is 10% higher today than it was yesterday. Traders often use basis points to express changes in yield, to avoid the confusion in terminology that you are experiencing. This textbook chapter [PDF] may help you.


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What does yield actually represent? Yield for a bond is the effective interest rate you get from the cash flows (coupons + final payment) of the bond. It is meant to be mathematically equivalent to putting the money you'd pay for the bond in a savings account that pays the "yield" in interest, and depositing all of the coupons in that account, ...


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The definitions are both correct. The reason for the assumption is to make the bond equivalent in value to just investing the market price at the YTM compounded continuously. So the coupons received are cancelled out by investing that cash in something else with the same yield. If you don't reinvest the coupons, you'll have a different ending value - you'll ...


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It is common advice to put bonds in tax-exempt account and stocks in taxable accounts. The reason is that: bond dividends are taxed as income (37% for rich folks) stocks can be taxed as long term capital gains (15-20% for rich folks) I believe that this advice was formed and started propagating when bonds had much higher returns than they do today. You ...


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This Investopedia article explains what recovery rate is: Recovery rate is the extent to which principal and accrued interest on defaulted debt can be recovered, expressed as a percentage of face value. The recovery rate can also be defined as the value of a security when it emerges from default or bankruptcy.


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