The term describes the $13\mathrm{.}7\%$ return that would be earned by a bondholder who owns a bond purchased yesterday for $$875,$ that pays interest payments of $$40$ every six months, has a call price of $$1,080,$ and could be called four years from today.$$An example of this type of bond is an airport construction bond in which the revenues generated via the airport$$s landing fees are used to service the interest payments and pay the maturity payments.$$The return earned by a bondholder who purchases a bond today at its market price, assuming that the bond will be held until maturity and that all coupons and the maturity payment will be received in accordance with the indenture.$$An example of this form of debt is issued by a German borrower, sold in the United States, and denominated in U$.$S$.$ dollars.$$The interest payment paid on a bond, calculated by multiplying the bond$$s interest rate by its face $($par$)$ value.$$