wikiHow Bond Total Return Glossary Interest Income: The total amount of interest payments received during the holding period of the bond. Capital Gains: An increase in the market price of a bond, resulting in a profit for the investor who holds the bond. Capital Losses: A decrease in the market price of a bond, resulting in a loss for the investor who holds the bond. Market Price: The current price of a bond in the market, which may be higher or lower than the face value of the bond. Purchase Price: The price paid to purchase the bond. Face Value: The amount of money that will be paid to the bondholder at maturity. Coupon Rate: The annual interest rate stated on a bond. Time Held: The length of time that the bond was held, in days. Days in the Year: The number of days in a year that the bond pays interest. This is typically 365 days, but it may be different depending on the bond. Yield to Maturity: The rate of return anticipated on a bond if it is held until maturity, and all interest payments and the face value are received. Holding Period: The length of time that an investor holds a bond before selling it. Total Return: The total amount of return earned by an investor, taking into account both interest income and capital gains or losses. Annualized Return: The total return on a bond over a one-year period. Yield: The rate of return on a bond, expressed as a percentage of the bond's current market price. Page