BondStats
Learn / Formula / Log Return
RETURNS

Log Return

Creates an additive continuously compounded return measure.

Formula

r = ln(P1/P0)

Variables: P0 initial price; P1 ending price

What it means

Creates an additive continuously compounded return measure.

Example

A price move from 100 to 105 has a log return of ln(1.05), about 4.88%.

How to interpret it

This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.

BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.