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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.

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