What does 7-Day Average Yield mean?

Question

I have invested money for a 5.25% with a 7 day average yield. Does that mean that i will get the interest off of my money every 7 days?

Answer 1

The 7 day yield is a measure of performance in the interest rates.
The calculation for it is...

Add the net interest income earned by the fund over the last 7 days (the fund's expenses are already removed prior to divends being paid) for that period.
Divide that dollar amount by the average size of the fund's investments over the same 7 days.
Multiply by 365/7 to give the 7 day yield.
To calculate approximately how much interest one might earn in a money fund account, take the 7 day yield, multiply by the amount invested, divide by the number of days in the year, and then multiply by the number of days in question.

This does not take compounding into effect though.
Hope this help a tiny bit!!

Answer 2

This Site Might Help You.

RE:
What does 7-Day Average Yield mean?
I have invested money for a 5.25% with a 7 day average yield. Does that mean that i will get the interest off of my money every 7 days?

Answer 3

Average yield says NOTHING about payouts .
Don't confuse irrelevant items .

Rates fluctuate and rather than deal with the nit-noy daily rate , they are saying the weekly (7 day) rate is 5.25%
( could have been 5 one day and 5.5 another)

It is just what it says it is - weekly rate ,
It does not mention when paid .

>