The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: Y

YACHT INSURANCE

Insurance that covers pleasure boats against collision, hull damage, and liability indemnity.

YANKEE

A note issued in US dollars by a foreign company in the market.

YIELD ADVANTAGE

The spread gained by having convertible bonds instead of stock. Refer to simple breakeven.

YIELD BURNING

When underwriters charge too much for treasury bonds that are held in escrow. This is done before retiring the existing bonds and is illegal. This causes the yield to burn down.

YIELD CURVE

Plotting interest rates against maturities creating a term structure. In normal conditions it is a upward curve. This causes shortterm funds to cost less to invest in. The shape is influenced by

YIELD CURVE OPTION

A spread that allows payoff based on the differential between on point on the yield curve and the strike price. The buyer gains efficiency and cost advantages.

YIELD ENHANCEMENT

A strategy used to increase core returns. This is intended to be a low risk move. Refer to arbitrage speculation and hedging.

YIELD TO CALL

The yield of a callable bond. This is the percent return at the first call date. Refer to yield to maturity.

YIELD TO MATURITY

The yield of a coupon bearing security. It is the percent return of a bond when it finally matures. AKA promised yield. Refer to yield to call.

YEA AND NAY

Yes and no. According to a charter of Athelstan, the people of Riponwere to be believed in all actions or suits upon their yea aud nay, without the yynecessity of taking any

YEAR

The period in which the revolution of the earth round the sun, and the accompanyingchanges in the order of nature, are completed. Generally, when a statute Yspeaks of a year, twelve calendar,

YEAS AND NAYS

The affirmative and negative votes on a bill or measure before alegislative assembly. “Calling the yeas and nays” is calling for the individual and oralvote of each member, usually upon a call

YEME

In old records. Winter; a corruption of the Latin “hiems.”

YEOMAN

In English law. A commoner; a freeholder under the rank of gentleman. Cowell. A man who has free land of forty shillings by the year; who was ancientlythereby qualified to serve on

YIELD

In the law of real property, is to perform a service due by a tenant to hislord. Hence the usual form of reservation of a rent in a lease begins with the

YIELDING AND PAYING

In conveyancing. The initial words of that clause in leasesIn which the rent to be paid by the lessee is mentioned and reserved.

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