Yield is a return on capital investment of various forms. In the stock market, yield essentially communicates a rate of return made from an investment, such as dividend, which is called dividend yield. Yield is also a function of the bond market, where current yield is a coupon rate of interest divided by the bond’s purchase price, while maturity yield is a rate of return on a bond that takes into account the sum annual interest payment, the purchase price, the redemption value as well as the time period remaining until maturity.

This Post Has 2 Comments

Leave a Reply