Wed, Jul 16th,2014
Generally, yield refers to the return on an investor's capital investment. In terms of debt securities, such as bonds, an investor may wish to determine the?Current Yield,?Yield to Maturity?or?Yield to Call?on a bond. For instance, the current yield on a bond is the coupon rate of interest divided by the purchase price of the bond. If a bond is sold for $1000 with a 10% coupon, it offers a 10% current yield. If that same bond were selling for $500, however, it would offer a 20% yield to an investor who bought it for $500. See also?Yield to Maturity; Yield to Call.