TeachMeFinance.com - explain Income basis
Income basis -- The percentage of return from an investment,
as, for example, the percentage that the interest on a
bond or the dividend on a stock equals when calculated on
the cost of the bond or stock.
A bond or stock paying 6 per cent which is bought at 120
returns or yields 5 per cent ; therefore, this bond or stock at
120 is on a 5 per cent income basis.
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