Reinvesting the coupon will produce a higher yield because interest is earned on the interest payments.
Investment dictionary. Academic. 2012.
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effective yield — A measure of the annual return from an investment. The Effective yield is calculated by dividing the coupon interest rate by the amount invested expressed as a percentage of the par value. American Banker Glossary yield or return on a short term… … Financial and business terms
effective yield — See: gross redemption yield … Accounting dictionary
effective yield — See gross redemption yield … Big dictionary of business and management
effective yield — /ɪˌfektɪv ji:ld/ noun an actual yield shown as a percentage of the price paid after adjustments have been made … Dictionary of banking and finance
annual effective yield — See: annual percentage yield. Bloomberg Financial Dictionary … Financial and business terms
Effective interest rate — The effective interest rate, effective annual interest rate, Annual Equivalent Rate (AER) or simply effective rate is the interest rate on a loan or financial product restated from the nominal interest rate as an interest rate with annual… … Wikipedia
Yield — The percentage rate of return paid on a stock in the form of dividends, or the effective rate of interest paid on a bond or note. The New York Times Financial Glossary * * * ▪ I. yield yield 1 [jiːld] noun 1. [countable, uncountable] FINANCE the… … Financial and business terms
yield — A measure of the annual return on an investment. Chicago Board of Trade glossary 1) The production of a piece of land; e.g., his land yielded 100 bushels per acre. 2) The return provided by an investment; for example, if the return on an… … Financial and business terms
yield to warrant call — Applies mainly to convertible securities. effective yield of usable or synthetic convertible bonds determined against the first date at which the warrants can be called. Bloomberg Financial Dictionary … Financial and business terms
yield to warrant expiration — Applies mainly to convertible securities. effective yield of usable convertible bonds determined by the expiration date of the applicable warrants. Bloomberg Financial Dictionary … Financial and business terms