Business and Personal Finance Dictionary

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• RATE OF RETURN
  
  The rate of return is your annual income on an investment. With a stock, your return, known as the dividend yield, is your annual dividend divided by the price you paid for the stock. In the case of bonds, return is the current yield, or the annual interest you receive, divided by the price you paid for the bond. For example, if you paid $900 for a bond with a par value of $1,000 that pays 6% interest, your rate of return is $60 divided by $900, or 6.67%.
  
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