Constant Yield Method

Business, Legal & Accounting Glossary

Definition: Constant Yield Method


Constant Yield Method


Full Definition of Constant Yield Method


Criteria used for tax purposes to calculate the annual income tax effects of a zero-coupon bond or other zero-coupon instruments. The constant yield method is explained by IRS Publication 1212, which describes how to find the income tax values, despite the fact that zero-coupon instruments do not have any coupon payments.


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Definition Sources


Definitions for Constant Yield Method are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.