The income return on an investment, such as dividends or interest, expressed as a percentage of the investment's cost or current market value.
Using Yield in an Example
If a bond with a face value of $1,000 pays interest of $50 annually, the yield of the bond is 5% per year.
Using Yield in a sentence
The investor was pleased with the high yield of his dividend stocks, which provided a steady income stream.
Related Terms
Yellow Book
The 'Yellow Book' refers to the 'Government Auditing Standards' issued by the Comptroller General of the United States, which outlines the auditing standards for government organizations, programs, activities, and functions, as well as for entities receiving government assistance.
A graph that illustrates the relationship between interest rates and the maturities of debt securities of the same credit quality, showing how these rates vary with different maturity dates.
The total return anticipated on a bond if the bond is held until its maturity date, considering all payments of principal and interest, adjusted for any premium or discount to the face value of the bond.
