What Is Yield?

 Himanshu Singh

Reviewed by

Himanshu Singh WSO Editorial Board

Expertise: Investment Banking | Private Equity

Yield simply means the return on an investment, usually the interest paid on a fixed income asset. It is expressed as a percentage and the calculation is simply return divided by cost. Yield measurements are most commonly associated with bonds and there are 3 main kinds of yield to consider:

  • Current Rate - the rate of interest relative to the current bond price
  • Coupon Rate - the interest raid paid at the time of issue
  • Yield to Maturity - the return an investor can expect over the remaining life of the bond

To learn more about this concept and become a master at bonds and fixed income, you should check out our Bond Course - Fixed Income (coming soon!).

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Himanshu Singh is a member of WSO Editorial Board which helps ensure the accuracy of content across top articles on Wall Street Oasis. Prior to joining UBS as an Investment Banker, Himanshu worked as an Investment Associate for Exin Capital Partners Limited, participating in all aspects of the investment process, including identifying new investment opportunities, detailed due diligence, financial modeling & LBO valuation and presenting investment recommendations internally. Himanshu holds an MBA from the Indian Institute of Management and a Bachelor of Engineering from Netaji Subhas Institute of Technology This content was originally created by member WallStreetOasis.com and has evolved with the help of our mentors.