what is yield maintenance 
yield maintenance is a sort of prepayment penalty that allows investors to attain the same yield as if the borrower made all scheduled interest payments up until the maturity date it dictates that borrowers pay the rate differential between the loan interest rate and the prevailing market interest rate on the prepaid capital for the period remaining to loan maturity yield maintenance premiums are designed to make investors indifferent to prepayment the settlement of a debt or installment loan before its official due date furthermore it makes refinancing unattractive and uneconomical to borrowers understanding yield maintenance