The definition of Yield
The value of interest or dividend payments from a stock, bond, mutual fund, annuity, real estate investment trust (REIT) or other investment, usually stated as a percentage of the investment's current price. The yield on a stock is the annual dividend calculated as a percentage of the price of a share. Bond yields can come in a variety of forms. Coupon yield is the interest rate stated on the face of the bond. Current yield is the interest rate based on the current purchase price of the bond which can fluctuate. Yield to maturity calculates the yield based on the difference between the bond's purchase price and its face value, with the difference amortized over the remaining life of the bond.
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