Letter Y Vocabulary Flashcards
A comparison of a statistic for one period to the same period the previous year.
Year Over Year (YOY)
The probability of a person of a certain age being alive at the end of the year.
Yearly Probability of Living
A method of determining an investment’s annual growth rate over time.
Yearly Rate of Return Method
An arrangement allowing an insurer to cover their risks with a reinsurer with the understanding that the agreement is renewable yearly.
Yearly Renewable Term Plan of Reinsurance
The period beginning at the start of the current year up until the current date.
Year-to-date (YTD)
The income returned on an investment, such as dividends or interest received.
Yield
A graph that plots interest rates of bonds with equal credit quality but different maturity dates.
Yield Curve
The difference in yield between two different debt instruments, typically of varying credit quality or differing maturities.
Yield Spread
The rate of return anticipated on a bond if it is held until the call date.
Yield-to-Call (YTC)
The total return anticipated on a bond if it is held until it matures.
Yield-to-Maturity (YTM)
The lowest potential yield out of the yields to call, maturity, and any other possible redemption dates.
Yield-to-Worst (YTW)
