A return measure for an investment over a set period of time expressed as a percentage. Yield represents the income generated by an investment relative to its cost or current market value. It takes into account both interest payments and any other cash flows, such as dividends, received during the investment’s holding period. The yield is calculated by dividing the income earned by the investment by its initial cost or current market value and multiplying by 100 to express it as a percentage. Yield serves as a crucial indicator of the investment’s profitability and income potential, aiding investors in comparing different investment options and assessing their potential returns.
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