Skip to main content
market.news — Markets without borders
Bonds

Yield

Annual income (interest or dividends) divided by current price, expressed as a percentage.

In depth

For bonds: yield depends on coupon rate, current price, time to maturity. "Yield to maturity" (YTM) is the total return if held to maturity, including reinvested coupons. For stocks: dividend yield = annual dividend ÷ current price. Bond and stock yields move with interest rates and risk perceptions.

Frequently asked about Yield

What is Yield?

Annual income (interest or dividends) divided by current price, expressed as a percentage. For bonds: yield depends on coupon rate, current price, time to maturity. "Yield to maturity" (YTM) is the total return if held to maturity, including reinvested coupons. For stocks: dividend yield = annual dividend ÷ current price. Bond and stock yields move with interest rates and risk perceptions.

Why does Yield matter for investors?

In bonds, Yield is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.

How is Yield used in practice?

For bonds: yield depends on coupon rate, current price, time to maturity. "Yield to maturity" (YTM) is the total return if held to maturity, including reinvested coupons.

Recent news mentioning Yield

Related terms

Looking for more financial terms?

Browse Full Glossary →